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Who normally pays the closing costs on a house and how do they normally determine the amount?

My husband has been the one discussing everything with the realtor and mortgage company. I was talking to my dad about it the other day telling him we had found one we liked and he was asking me about the prices and everything. To make a long story shirt, he said that we shouldn't be having to pay the whole closing cost and usually the sellers pays it or in some cases you pay half and half. They're adding around $3800 onto the end of the total for closing costs, but that seems a little much from what others have told me. So my question is how do they determine the costs of closing costs and who is generally supposed to pay it?

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Asked by Anonymous at 12:32 PM on Nov. 17, 2009 in Money & Work

Answers (5)
  • You have to pay the closing cost unless you ask them to in your offer. The seller can agree to pay some of it. Ours was just a little lower then 3800, I think. It has been a few years! The seller paid $2000 of ours. I am not sure of everything that goes into that, but you do pay interest on your new mortgage. I can't remember what else!

    Answer by micheledo at 12:39 PM on Nov. 17, 2009

  • The buyer typically pays closing they can offer more for the house and see if the seller will pay the closing costs. Depends on the market you are in. We live where home prices are still going up so our home we had almost no room to negotiate. We got a good deal our home appraises for 30k more than we paid for it. We had to bring a 50k cashiers check at closing. That was our down payment and our closing costs. They gave us a Truth in Lending Statement that listed all the estimated costs for closing. It went down by nearly half on closing day. They usually over estimate so you do not come up short near the end. Also any Earnest money you put down when you put in your offer will go to closing costs. I would speak to your husband about it or call and speak with the mortgage company.


    Answer by Anonymous at 2:09 PM on Nov. 17, 2009

  • We asked the seller to pay for our CC's, but they didn't. We didn't have anymore money for the closing costs, so we had to finance them... (that was an extra $12,000) I live in CA, the closing costs are usually 3% of the sale price. Hope this helps.

    Answer by Anonymous at 5:05 PM on Nov. 17, 2009

  • It depends. In mine, our realitor got it into the contract that the seller covered most of it, but that's not always the case. We also had it written into the contract that we could change our minds without cause for a period of time after we signed. That was comforting. not sure the amount. It depends.

    Answer by Anonymous at 5:26 PM on Nov. 17, 2009

  • When we bought our home, we asked the sellers to pay the closing costs and they agreed to pay for 1/2 of our closing costs. I think we still ended up paying around $2500 in closing costs ourselves. You have to get them to agree to it and put it into the contract to make it happen. All in all, we ended up having to have $7500 at the closing on our house. The bank can give you a very close estimate of what you will need, it's called a 'good faith estimate'. Ours ended up being slightly more, but not much more. They didn't have the final figure until the day before the closing.

    Answer by slw123 at 8:58 PM on Nov. 17, 2009

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