To purchase a property, besides the down payment, buyer needs to prepare some additional money for closing cost. Here is a list of fee involved to close the escrow.
1.Title fee.
2. Escrow fee.
3. Loan processing fee.
4. 1st month prorated mortgage payment.
5. Prorated property tax.
6. Home insurance.
7. Appraisal fee.
8. Credit report fee.
9. Notary fee.
10. Wire fee.
11. Carrier fee.
12. Home inspection fee.
13. Private Mortgage Insurance (if applicable).
14. Impound account reserves (if applicable).
The closing cost runs about 2% to 4% of the purchase price. Much of it depends on how much lender charges on point and origination fee.
Depending on the credit score and amount of down payment, lender might allow up to 6% of the purchase price as credit towards buyer's closing cost from the seller. This will help pay for the closing cost if buyer have only enough savings for down payment.
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