When one is thinking of buying a home the usual questions one asks are:
How much payment can I afford?
Do I have enough down payment?
Another question you need to ask your self is do I have enough to cover the closing costs? To answer that question, of course, you need to know how much those fees will be. And, in order to know that, you need to know what fees there are to be paid.
If you are buying in Colorado I can give you a little help. Below are listed some, if not most of the fees you can expect closings and home loans to carry with them.
Credit Report Expense
- Loan Origination Fee
- Discount Points
- Prepaid property taxes some times up to 9 months of taxes, but usually more like 3-6 months.
- Prepaid homeowners insurance, 2 or 3 months worth.
- 2 or 3 months worth of HOA fees
- HOA Transfer fees
- HOA fee for CIC docs
- Storm Drainage Fee
- Prepaid interest for partial month to Lender
- Closing Fee to Title Company
- Title Insurance for Lender
- Various Endorsements Fees to Title Company
- Courier Fees to Title company
- Tax statement fee to Title Company
- Loan closing fee to lender to Title Company
- Copy fee for Title company
- Recording of Title fees
- Sales tax on deed
- Brokerage Document handling and storage fee
- Delivery, recording and processing to Recorder fee
Typically these fees can run between 2 and 4 percent of the loan amount. These are over and above your down payment. During the process of loan application you will be given a Good Faith Estimate of your closing costs by your lender. It is exactly that, an estimate. Do your homework. Contact the Title Company that will be used and ask them how much they estimate for each of the fees above and for any other fees besides those above. That will give you a better estimate on the fees that are paid to them. Contact the HOA and find out what their fees will be. These can vary greatly from HOA to HOA as can the title company fees from company to company.
You can always get your own homeowners insurance before closing and instruct the lender to let you take care of that each year on your own.
Don't wait until the last minute when you get your HUD document from the title company. That can come as late as the morning of closing. Know what you will be needing in closing costs well in advance. And, of course, you can ask the seller to pay some or all of those costs, but that will need to be negotiated when negotiating the contract.