Real Estate Closing Costs, Other Maine FAQ Property Sale Answers.
Before buying a piece of Maine real estate, what are the closing costs going to set you back?
How much damage the closing costs on a Maine property listing amount to depends on several factors. One big question needs answering first.
Are we talking you going through a bank to finance the Maine property?
Buying a Maine home borrowing money?
Then cue the esquire. Get him on the speaker phone. Bring in the lawyer side of the HUD 1 real estate closing settlement statement. For review with a calculator.
When banks require extra hurdles to be cleared. Because they often sell the mortgage. You help pay for the packaging for that sale on the secondary market.
The Maine lawyer performing a real estate title search goes back the last forty years in the registry of deeds.
Or further to get to a solid starting point. Bank lenders need prepaids. Up front money to fuel the application fees that start to rack up. If a bank in Maine is shadowing the mortgage process, credit check, lender’s policy title insurance charges need payment. And don’t forget the fee for the appraiser. To trot out to the property. Shoot photos. Sketch a floor plan.To give it the once over. To determine today, for cash, what is the fair market value of this property. The one you want help to finance, to own.
And if there are loose end issues with the property condition, and the seller says not my monkey.
Then you have to clear the contingency hurdles the bank places on the money lending process. For you to score, secure a home loan. A pre closing job jar handed to you the buyer. To fix the broken railing on the back deck. Add a ground fault interrupter electrical circuit in the bathroom and two more in the kitchen. Fix the broken window glass pane in the garage.
.Scape and primer, paint the peeling eaves on the south end of the home. Try not to fall off the ladder and test the seller’s home owner’s insurance. And yeah, oh shucks. Fix the drip drip drip leak in the cellar over the hot water furnace. Have an oil burner man check the filter that has a plastic cool whip bowl.
A little cock eyed, unlevel with some Texas tea in it.
From seepage around the tank filter. That’s an age old problem.
Been going on for some time now.
Then drag the appraiser back in to verify all is well. To sign off. Get that real estate paperwork conveyor belt humming. Spinning, whirling toward the bank underwriting department.
If the Maine bank requires a building inspection, or tradesmen to visit the property to determine structural problems and how to correct them, yikes. Now you have lots of eyeballs.
Plenty of Bob Vila opinions from pie holes shared.
More cooks in the kitchen, means plan to open the wallet wider. And groan “ahhhhhhhh”. The mortgage inspection survey to determine are your driveway, hedges, house, garage and storage shed structures within the property boundary lines?
On the place you want to buy. Are there encroachments from the your new home spilling over onto your neighbor’s property? Something needs to be done to resolve that deal killer.
You need a class D, or level IV survey to down and dirty do a quick, less involved property boundary inspection.
That mean pay the surveyor for a green light. Or to find red warning flags. Add another number to the space on the closing documents for the land surveyor’s fee.
And that was mentioned, spelled out to know what to expect at the time of home loan application.
For a good faith estimate of what you better have squirreled away to make the real estate closing party happen at the bank, an attorney’s office.
Or through the mails because buyer and seller are not in town.
With cash sales, all the hoops outside the title work to search the title go away.
No appraisal, water test. No credit checks or employment verification or property tax and insurance monthly escrows.
No mortgage insurance charges.Because you did not have twenty percent down payments or equity position that high established yet. Flood insurance, hold the phone. Almost forgot about the bank wanting that if the property is a little too handy to something wet. Year round and flowing with any strength.
With owner financing on Maine land, a mortgage and a promissory note need to accompany the deed of conveyance to the registry of deeds.
To show the world the pledge to guarantee repayment of the mortgage for security taken back from the seller, or grantor. And the rules about you pay you stay. And what happens if you don’t.
The fine print about default, foreclosure. All those signal call the attorney back in. To salvage with explore legal options, remedies. And added expenses after the real estate closing buyer and seller shook hands, parted ways.
Not going to try to give you ball park figures for each of the players in a real estate transaction. Their bills vary greatly and always get an estimate going in. Maine is a big state. Lots of players. And in the case of a lawyer’s fees, it helps if he has already done title work. Can build on what he always has in registry information, deed research paperwork. Saves money doing a continuation.
Closing settlement charges, ask how much, who’s invited to the transfer party. So no one is bent out of shape at the tail end. Going into the Maine real estate closing. Or shut out. Short on cash. Has to push away from the closing table.
207.532.6573 | MOOERS REALTY 69 North Street Houlton Maine | [email protected]