Rising Closing Costs Not Hurting Ohio Homebuyers

Homebuyers nationwide have been debating about buying a new home given the rapidly rising housing prices and also, closing costs. To be exact, mortgage closing costs have climbed nearly 6 percent over the past year. And while it is true that both housing prices and closing costs are increasing, the fact remains that Ohio still has some of the lowest closing costs in the country.

According to a Bankrate.com study, Ohio is one of few states (along with D.C., Missouri, Tennessee, and Nevada) with low average closing costs, coming in at an average of $2,392.

If you’ve been on the fence about buying a home in Brunswick, Hinckley, Medina, Strongsville or another surrounding community, this is just another reason why now is a great time to make a move. You can sell your current home, pack up and settle into your dream home now for less than the rest of the country (especially in terms of closing costs) when all is said and done— and certainly pay less than you would if you waited to start the Ohio real estate process at this time next year.

Why mortgage closing costs are rising
In Bankrate’s recent closing costs study, they attributed the increase to the high fees lenders charge to start a home loan. Fees for originating home loans have risen close to 9 percent while the other factors associated with closing costs—third-party fees and appraisals— rose just 1 percent.

It also has to do with stricter regulations in the real estate and mortgage industries. “The biggest reason [for the higher fees] is the additional regulations,” one finance expert told Bankrate. “The No. 1 at the moment is the qualified mortgage rule. That alone has really added additional man-hours to the mortgage approval process.” The rule, also known as the borrowers ability to repay rule, began in January and now requires lenders to verify that a borrower can afford to repay the loan before beginning the process and granting approval.

The costs to purchase local real estate in Medina County, OH are indeed on the rise, but your actions now can tackle many of them. No matter if you’re in the market to sell your home or purchase something new in Medina, Valley City, Columbia Station, North Royalton, Brunswick, Hinckley and StrongsvilleBOLD Real Estate Consultants can help! Let us guide you through the process and assist you in taking advantage of today’s market conditions.

Sajag Patel
BOLD Real Estate Consultants

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