With over two dozen state parks and beaches, and with an average summer temperature of 73 degrees, Rhode Island is a place that will catch your interest. The state boasts large economies in manufacturing and tourism and offers attractive activities like scuba diving classes, hiking and biking trails, riverboat tours, and historic landmark sites.
You are at the end of your search; you have walked through, examined and considered countless Rhode Island homes for sale by owner, and you have finally found the one for you. Once your offer on the home has been accepted, your agent will work with you to help you close on the house. While many home buyers are confused about what exactly closing and closing costs entail, understanding more about your home closing will help you assume an educated role throughout the process.
 |
||
| Population 1,048,319 | Median Age 36.7 yrs | Household Size: 2.47 |
| Avg Home Value: $133,000 | ||
For Sale in Rhode Island
A home closing typically occurs in an office setting. You and your agent will meet with the home’s seller to sign the final paperwork and transfer the title of the property to your name. In addition to these important finalities, you will also have to pay a number of closing costs. After you are done looking at homes for sale and are closing on a home purchase, there are several things you should know about closing costs.
What do Closing Costs Include?
Closing costs typically average between 2 percent to 3 percent of the total home purchase price. The fees, taxes and other charges associated with the purchase of a home are included in this amount. While what will you pay at closing will vary, you might expect to pay a loan processing fee to your lender, a prepaid amount of interest and property taxes, title insurance or other miscellaneous document fees and closing charges. Closing costs are either paid by the buyer or the seller, and can be negotiated upon.
How to Save Money on Closing Costs in Rhode Island
You are probably already paying a significant amount of money as a down payment. The several thousand dollar cost of closing on a home may seem too much to bear. There are, however, ways to cut your closing costs. First, before making an offer on a home, you should shop around for the best loan possible, considering everything from interest rates to closing cost fees. The amount of closing costs can often be added into your mortgage loan repayment.
You can also secure a no-point or no-fee loan. In these types of loans, the lender pays either all or part of the closing costs. You should consider this option carefully, for while these loans require less money up front, they also typically have higher interest rates. You can also try to negotiate with the seller to pay all or part of the closing costs. Do not be afraid to ask the seller if an arrangement can be made in this regard, as this is a common question of home buyers. In order to do this, however, you must also secure the approval of your lender.
Now that you have sorted through all the homes for sale, you do not want your closing to be a confusing process. Closing on your home does not have to feel too difficult for you to understand. Educate yourself on closing costs and the options available to you, and ask your agent for help with any other questions that may arise.
By Stephanie Allen
A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®