Don't be surprised by closing costs!

That is why we take time to explain what these expenses are and why we must take them into account from the beginning.

What Are the closing costs?

This is what they call those extra expenses unrelated to the cost of the property, they are necessary expenses to carry out all the paperwork and execute the administrative activities to finalize the purchase of a property. Among these procedures we find: The expenses of registration, title of property, title insurance, fee of the registration company for carrying out the closing and, in case of financing, the costs related to issuing a mortgage .

It should be noted that these expenses may vary, depending on the way the property is acquired, whether it is a cash purchase or through a financing system.

Here We give you a more detailed explanation of the closing costs for both cases:

Cash:

Approximately 1.5% of the value of the property is estimated, including title registration fees, title insurance, stamps, title company fee for closing. , among others.

Purchase with financing:

They are approximately between 4 – 6% of the value of the property, which includes registration fees plus the bank's charges for issuing the loan. The difference between the closing cost percentage depends on many factors, including: the financial institution (all banks and/or mortgage servicers charge different amounts and percentages to issue the loan), amount of initial, financial profile, among other elements.