Closing costs rise on home sales
(NEWSCHANNEL 3) - While mortgage rates are low, tighter lending regulations are making it more expensive for home buyers when it comes time to closings.
The average cost of closing on a $200,000 loan was more than $2,500 in June, according to Bankrate.com.
That's 6-percent higher than last year.
The reason behind the hike is new guidelines put in place after the mortgage crisis.
Now lenders are looking closer at credit history, excessive debt and income level.
That time and manpower is then passed on to the borrowers' bill.
Closing costs not only include lender fees, but third-party expenses such as appraisals and credit reports