According to a study posted on Fox Business, more than 40% of young homeowners had negative feelings about closing costs. Within six months, many fees and expenses accrue, but did you know that some of this can be avoided?

Cash home transaction expenses are desirable for both sellers and buyers. An up-front offer can help you get the keys to the home you love, even if you're in a bidding war. Mogul Real Estate can help in many areas of California, but we also recommend learning about closing.

Read on to learn how much are closing costs if you buy in cash!

What Is the Purpose of Closing Fees?

Touring a new and potential home for your family can be exciting, but there's something else buyers often look forward to. Before you can move in, you'll have to complete paperwork and handle funds, this is typically finalized on the closing date.

Your closing date will be scheduled once you submit your offer, but keep in mind that it can change. You pay closing fees to cover all the costs you're responsible for when buying and to protect against risks. These fees also ensure you have available funds to cover future payments.

Working with an agent can be beneficial if you want to keep closing costs manageable. Some sellers are willing to pay part of the costs to help complete a deal. If you want help from a reliable team in California, let Mogul Real Estate be your one-stop source!

How Much Are Closing Costs If You Buy in Cash?

Closing costs for cash buyers tend to fall between two and five percent of the purchase price. Although fees can't be avoided completely, you'll get a better deal paying in cash than a conventional loan.

According to the California Association of Realtors, the median price for homes last year was over $900,000. With this price in mind, cash buyers can expect to pay anywhere between $18,000 and $45,000 in closing fees. Closing costs are required and as you work with your financial lender, they must be considered.

Are you curious about closing costs with a conventional loan?

Conventional loans have higher closing costs because more services are needed to finalize a mortgage. Buyers can expect closing costs to fall between three and six percent of their loan amount. Although there doesn't appear to be a large difference, every penny saved can go towards your future home.

Here are some of the reasons why conventional loans cost more:

• Loan document fees

• Wire fees or endorsements

• Origination fees

• Title insurance

Take the time to consider if a conventional loan or cash purchase is more suitable for your finances. If you have the funds, you'll experience the long-term benefits of buying in cash.

Diving Into Cash Purchase Home Costs

It's hard to identify how much are closing costs if you buy in cash, especially if you forget the fees.

To get a better idea of how much your home will cost you, you must look beyond the overall price and closing costs.

Take a look below to discover more about fees you may or may not encounter.

What Other Fees Will Appear?

As mentioned above, closing costs will be the most expensive fees to deal with. Aside from this, other fees may occur, but they could vary among sellers.

Title insurance, also known as a buyer's policy, can't be overlooked when buying a home. This fee offers protection against title issues if they arise after your closing date. Typically, this fee is around $1,000 but several factors can influence the amount.

Home inspection fees should be considered when purchasing, especially if you want to know what you're investing in. According to the National Association of Realtors, nearly 20% of buyers waived inspections in 2021. Waiving inspections might help speed processes, but, it could cost you more than you were expecting in home repairs.

Which Fees Will You Avoid?

Closing costs can't be avoided, but some fees can. The average home buyer experiences more fees and processes when they don't buy with cash.

This transaction can save you money if you have the cash and the ability. If you're buying a home in California, our team at Mogul Real Estate can ensure you don't pay more than necessary. Understanding the benefits of cash deals as a new homeowner will help improve your finances.

Here are a few fees you'll get to pass when you buy in cash:

• Mortgage interest & origination fees

• Certain appraisal fees

• Private mortgage insurance

Although some lender fees may be required, they are typically reduced if you pay in cash.

How Can Mogul Real Estate Assist?

If you're looking for a digital resource for buying homes with cash, we can help! At Mogul, know the value of knowledge during a purchase and we hope to put you in the best position to buy.

On our site, you can view the latest homes that've been listed and we can connect you with the ideal agent. Our blog and tools help buyers save and prepare for cash purchases, especially since they aren't as common. As a buyer, it's good to have as many resources as possible to maximize your budget.

Mogul Real Estate proudly serves the following communities:

• Los Angeles

• Riverside

• San Diego

• Orange County

• Temecula Valley

Our team is prepared to work in these communities and more across the region. Take a look here to discover additional locations or give us a call!

Cash in for a New Home

Whether you're looking to buy and/or sell in Temecula, Oceanside, or Murrieta, we have a licensed team ready to help. Don't let closing costs deter you from buying, especially when the market is getting hot.

To identify how much are closing costs if you buy in cash, you must consider multiple factors. You'll avoid fees with a cash purchase which can potentially shorten your moving timeline. With so many benefits of buying in cash, you don't want to skip out on a chance if you have the available funds.

If you're ready to make the move to California, add these tasks to your to-do list!