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Closing Costs: What to Expect

Congratulations on finding the home of your dreams. The seller even accepted your offer. Way to go! You made it past the first hurdle. Now…you enter escrow. Here is where we talk money. The downpayment is only one expense buyers pay. (If you need it, downpayment assistance is available for some Lake Havasu home buyers, by the way.) Buyers must also pay closing costs. But what are they, how much should you expect to pay, and does the seller have to pay any of them?

When buying a Lake Havasu home, you need a downpayment and money for closing costs. What are those costs and how much can you expect to pay for them?

Closing Costs

What are They?

Closing costs are the fees that buyers and sellers pay to various third parties in order to facilitate the sale of a property. These typically run between 2% and 7% of the purchase price. In Arizona, they run on the lower end. According to, ClosingCorp puts them at 1.21% to 1.82% of a home’s purchase price. For a $300,000 Lake Havasu home, this means roughly $6000. And that is in addition to your downpayment. Sometimes, even in a seller’s market, the seller may offer to help pay some of these costs just to make the deal happen. Talk to your Lake Havasu REALTOR® first to see if this might be a viable option for you.

What are Buyers Responsible For?

Since most of the closing costs relate to the mortgage, buyers tend to pay the majority of them. They include:

  • Prorated HOA fees
  • Prorated Property Taxes
  • Prorated homeowners insurance
  • Sales tax on the purchase
  • Home Inspection Fee
  • Loan origination fee
  • Credit check
  • Underwriter’s fee
  • Appraisal fee

To find out what your closing costs may be for the Havasu home you are interested in, Smart Asset offers an online calculator.

What Do Sellers Pay For?

Sellers typically pay commissions for both the buyer’s and the seller’s agents. This costs between 4% and 7% of the purchase price. They also pay for transferring the title to the buyer. And they take care of the fee paid to the title insurance company or attorney’s office where the buyer and seller meet for the final closing.

Federal law states that your lender must provide a closing disclosure at least three days before closing. This provides a list of all your closing costs, the terms of your loan, and your interest rate. Look this over to make sure it matches up to your original quote from your lender.

Sunstone Real Estate Group, Coldwell Banker Residential Brokerage, Lake Havasu City, AZ