Closing Costs

Average Closing Costs in The Woodlands, Texas

Closing costs vary between different lenders, real estate markets, and properties you are buying. Knowing what the average costs will help you identify if the lender you're planning to work with is offering a reasonable price. On average, home buyers will pay $79 for document preparation, $865 for origination fees, and $78 for taxes. Third-party charges are around $462 for an appraisal, $425 for a survey, $456 for settlement, $25 for a credit report, $11 for floor verification, and $36 for postage. Title insurance fees, on the other hand, can cost as much as $1,000 per property. Seller costs can vary significantly as most payments are not required, but this can change depending on what you get to negotiate with the buyer. Sellers typically shoulder expenses to bring a property up to code compliance which includes home inspections, warranty, property taxes, title insurance, escrow fees, and sales commission. In total, it should cost approximately 1% of the total sale price.

Check out our original neighborhood page at https://www.homesinwoodlandstx.com/.

Closing Cost Breakdown

Recurring Costs

• PMI
• Property Taxes
• Interest

Non-Recurring Costs

• Loan Origination Fee
• Loan Discount
• Appraisal Fee
• Credit Report
• Lender’s Inspection Fee
• Mortgage Broker Fee
• Tax Service Fee
• Flood Certification Fee
• Flood Monitoring
• Document Preparation
• Underwriting Fee
• Administration Fee
• Appraisal Review Fee
• Warehousing Fee
• Pre-paid Interest
• Homeowner’s Insurance
• VA Funding Fee
• Up-front Mortgage Insurance Premium (UFMIP)
• Mortgage Insurance
• Homeowners Insurance Impounds
• Property Tax Impounds
• Mortgage Insurance Impounds
• Closing/Escrow/Settlement Fee
• Title Insurance
• Notary Fees
• Recording Fees
• Pest Inspection
• Home Inspection
• Home Warranty
• Reconveyance Fee
• Demand Fee
• Sub-Escrow Fee
• Loan Tie-in Fee
• Homeowner’s Association Transfer Fee

Check out our original neighborhood page at https://www.homesinwoodlandstx.com/.

Top Tips to Reduce Closing Costs

1. Contact Multiple Lenders

The first thing you'll need to do if you plan to purchase a home is to contact as many lenders as possible. You would want to check out the different rates, prices, and other costs when it comes to purchasing a property. An excellent way to save some money is to have lenders compete with each other. When a lender provides an offer make sure to notify their competitor and then review if they can match or provide you with a better offer. Repeat this process a certain number, and you'll see your total costs drop significantly.

2. Request a GFE Form

There is no one process that fits all when it comes to lenders, and it might be confusing especially to new home buyers and sellers. Many charges may have different names or are grouped while some may be split up. The difference in price breakdowns may be a challenge when comparing price quotes. The best way to accurately assess the competitiveness of an offer would be to request for a Good Faith Estimate (GFE) form. The form lists all fees in a standard manner which will enable you to properly evaluate and compare all the lenders you'll be considering.

3. Ask Lender for a Detailed Breakdown

Once you've received your GFE Form, you would want to ask for an explanation on all items listed in your closing costs. You will want to know which of these costs can you negotiate to identify how much you can lower your expenses. Ask the lender to walk you through each charge. Although some third-party charges are non-negotiable, such as appraisals and credit report fees, other costs are flexible, such as title insurance, legal fees, and rate lock fees. Lenders may also charge fees that are negotiable, such as application fees, underwriting fees, and loan processing fees, which they can take out upon your request. 

Check out our original neighborhood page at https://www.homesinwoodlandstx.com/.