Attention Home Buyers! Do You Know How Much Closing Costs You Will Pay?

Buying your new home should be exciting!  A better understanding of the process and how it works will make you prepared when it’s time to finalize your home purchase, whether you’re buying your new home or refinancing your current home.

Closing costs are the miscellaneous fees charged by those involved with a home sale.  It may vary from county to county.

Don’t worry!  You can always contact a Realtor® or a real estate agent.  They can assist you with your transactions and may also recommend several other options on how you can cut back on closing costs.

What are those closing costs?

Thanks to our friend, Kachina Krafchow, from TICOR Title Company!  She has written out some typical closing costs and itemized them for us, as follows:
 
Paid By Both or Either Party
·    ATTORNEY FEES, COURIER/DELIVERY FEES, DOCUMENT PREPARATION – For deed(s) and other legal documents required to consummate the transaction
·    ESCROW FEE – Often split between buyer and seller
·    HOMEOWNER’S ASSOCIATION (HOA) DUES AND TRANSFER FEES
·    NOTARY FEES – To witness documentation
·    RECORDING FEES – To file legal documents with County Recorder
·    PROPERTY TAXES
·    OWNER’S TITLE INSURANCE PREMIUM

Buyer’s Typical Costs
·    APPRAISAL – One-time fee for new loan
·    CREDIT REPORT – For loan application
·    HOMEOWNER’S INSURANCE – Paid by buyer for fire/hazard insurance
·    LENDER’S TITLE INSURANCE PREMIUM
·    LOAN FEES – Origination and processing fees charged by lender
·    PMI – Some lenders require Private Mortgage Insurance
·    PREPAID INTEREST – Prorated depending on time of month the loan closes

Seller’s Typical Costs
·    REAL ESTATE COMMISSION
·    DISCLOSURE REPORTS – Natural Hazard report
·    HOME WARRANTY, EXISTING ENCUMBRANCES
·    PROPERTY INSPECTIONS, PEST INSPECTION/CORRECTION – Termite report
·    TRANSFER TAX – City/County conveyance tax

VA Non-Allowable Borrower Costs
·    LENDER’S APPRAISALS
·    LENDER’S INSPECTIONS – except in construction loan cases
·    LOAN CLOSING OR SETTLEMENT FEES (which include notary fees)
·    DOCUMENT PREPARATION FEES
·    PREPARING LOAN PAPERS OR CONVEYANCE FEES
·    ATTORNEY’S SERVICES other than for title work
·    PHOTOGRAPHS
·    INTEREST RATE LOCK-IN FEES
·    POSTAGE and other mailing charges, stationery, telephone calls, and other overhead
·    AMORTIZATION SCHEDULES, pass books, and membership or entrance fees
·    ESCROW FEES OR CHARGES
·    NOTE: Some special provisions apply to construction, alteration, improvement and repair loans

FHA Non-Allowable Borrower Costs
·    CUSTOMARY COSTS to Buyer and Seller; sometimes lender will require Seller to pay for Tax Service Fees

Thank you Kachina for sharing this list with our home buyers!  Our home buyer clients will now be better prepared when it’s time to close escrow on their new house.