The term closing costs refers to the amount of money you have to pay before you can sign the dotted line that makes a condo or loft yours. If you’re buying a condo in DTLA, you’ll end up paying some closing costs – unless, of course, the seller agrees to pay them for you.
It’s a big range, but what we can tell you is that closing costs are usually somewhere between 2% and 7% of a home’s purchase price.
But let’s break it down farther.
How Much Are Closing Costs When You Buy a Condo in Downtown Los Angeles?
If you buy a $500,000 condo in DTLA and your closing costs are on the low end of the spectrum, they could be around $10,000. If they’re on the high end of the spectrum, they could be around $35,000. Most fall somewhere in the middle, though.
Where Do Closing Costs Go?
Typically, closing costs go to third-party vendors. You might pay:
- Appraisal, which you have to pay for but your lender will require.
- Credit report fees, which your lender charges.
- Home inspection costs, which you’ll pay for at the time of the inspection (usually).
- Loan origination fees, which are what your lender charges to process your loan.
- Taxes, which go to the government for the money you’re borrowing for your mortgage.
- Title search fees, which you’ll pay to a title insurance agency.
- Underwriter’s fees, which your lender charges.
But there are ways you can save on closing costs – like through the home inspection. You are free to choose any home inspector you’d like, and you don’t have to hire the most expensive. You can also ask the seller to pay some (or all) of your closing costs.
Some loans, such as VA loans, limit the amount you can be charged in closing costs.
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
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