Q: What Will I Pay in Closing Costs?
Here’s what you’ll pay for in closing costs in the state of Arizona.
Whether you’re a first-time homebuyer, have bought a few homes, or are an out-of-state buyer, it’s crucial to ensure you’re budgeting properly for the closing costs of a home purchase. There are two types of closing costs; the kind you pay before closing, and the kind you pay at closing. In the state of Arizona, you’re unlikely to pay for buyer agent commission, as the seller will pay your agent fees (related note: Other states require you to have a lawyer at closing, but Arizona does not).
On the day of closing, you’ll likely have to pay about 2% of the purchase price as closing costs.
When you go under contract, you’ll likely pay earnest money and for an inspection and appraisal. Right before you close, you’ll also probably have to pay your internet service provider, moving company, and utilities. On the day of closing, you’ll likely have to pay about 2% of the purchase price as closing costs, which is separate from the down payment. That 2% will include things such as lender fees (processing, underwriting, etc.), prepaid interest, title and escrow fees, homeowners association fees, and prorated taxes.
Each situation is different, so there’s no exact number you can expect to pay (for example, if you close at the beginning of the month, you may not have to pay prepaid interest).
If you’d like a more detailed breakdown of what closing costs to expect or have any questions, just give me a call or send an email. I’d be glad to help you.