North Chattanooga - Hill City - UTC, Tennessee
829 McCallie Ave
Chattanooga, TN 37403
(423) 756-3057

4 FAQ About Escrow Fees January 11, 2019

North Chattanooga - Hill City - UTC, 6
4 FAQ About Escrow Fees, 6, Tennessee

If you’re saving for a home, it’s important to remember that the down payment is just one of the expenses associated with finalizing the real estate transaction. You have probably heard the term “closing costs,” for example, but you may not know what they include. Such costs might be comprised of appraisal fees, title search expenses, loan origination fees, credit report charges, and deed-recorded fees. They also include escrow fees, which can be fairly complicated and often confuse both buyers and sellers. To clear things up, here are some answers to the most common questions about these fees.

Common Questions About Escrow Fees, Answered

What are they?

Escrow fees cover the cost of the attorney or escrow agent who accepts, holds, or transfers funds during a real estate transaction. Typically, the seller is responsible for these fees, but it varies from sale to sale. 

How much are escrow fees?

In general, an escrow agent will charge between 1% and 2% of the purchase price for their services. They may also charge the seller and/or buyer for transferring funds and distributing documents. 

Does the buyer ever have to cover escrow fees?

escrow feesThe buyer and seller can negotiate when it comes to all costs associated with closing the sale, including escrow fees. In some cases, they split such expenses evenly, and in others, the buyer may actually cover all of the fees.  

Will some portion of the fees be refunded upon closing?

An escrow agent will provide a rough estimate of their fees prior to closing and then add a “refundable pad” to the final amount. Since the total can change depending on interest rates and other variables, this will ensure there is enough to cover the escrow services. After the transaction is finalized, the agent will then refund any unused portion of the pad. 

 

If you have additional questions about escrow fees — or protecting your financial interests in general during real estate transactions — turn to the knowledgeable team at Chattanooga Title. For more than three decades, this title agency has been helping residents throughout southeastern Tennessee with every step of the home buying or selling process. Whether you need escrow services, title insurance, or assistance with a foreclosure, you can count on their team for expert guidance. To schedule an appointment, call (423) 756-3057, or visit them online to learn more about their services. 

Other Announcements, Events and Deals from Chattanooga Title, Inc.
Buying a House? What You Should Know About the Closing, 6, Tennessee
Buying a house is both exciting and a little daunting for most first-time home buyers. Closing on the purchase of a new home involves the official transfer of ownershi...read more
What Can You Learn By Conducting a Title Search?, 6, Tennessee
It’s wise to utilize title services before finalizing any kind of real estate transaction. Whether buying, selling, or refinancing, taking advantage of this process will he...read more
3 Things a Title Company Can Do, 6, Tennessee
Buying or selling real estate can be a complicated affair. If you want assurance that all documents are completed and filed accurately and the property is a worthwhile inve...read more
4 Red Flags to Look for When Buying a Home, 6, Tennessee
Buying a home is a massive investment in your future, but it’s also a serious legal and financial commitment. Unfortunately, too many buyers fall in love with a property’s potential,...read more
4 Financial Tips When Buying a House for the First Time, 6, Tennessee
If it’s your first time buying a house, you probably have a lot of questions. From getting approved for a loan to navigating closing costs, you’ll need to make smart financial d...read more