Home buyers should be informed and educated about the purchase process as much as possible in advance, so they aren't surprised at closing time.
Closing costs for buyers are an important aspect of the deal and would cover title, processing of loan and transferring property ownership from the seller to the buyer. 
Some closing costs are negotiable between buyer and seller, and others can be addressed with mortgage broker and/or lender and escrow holder.
Orange County, California, buyers expect to be informed about what costs they must pay during the process and what of those are negotiable between buyer and seller.
Categories of costs to home buyers must be set forth on the HUD-1 Settlement Statement at close of escrow.
Title Charges
- Document recording fees - unknown amount and based upon number of docs and pages to be recorded
- Owner's title policy premium - usually between $1,712 and $2,349 on a $500k property purchase price
- Endorsement - amount unknown
- Sub-escrow fee - unknown
- Notary fees - unknown
Government taxes and fees (pursuant to laws and regulations)
- Orange County City documentary transfer tax - $.55 per $1,000 of purchase value ($275 on $500k purchase price)
- OC documentary transfer tax - $.55 per $1,000 of purchase value ($275 on $500k purchase price)
- OC property tax on a per diem basis until start of tax year on July 1 of each year
Homeowners Association charges
- HOAs charge for transfer of account from seller to buyer, which is usually paid by the buyer - (estimate of $300)
- HOAs charge for copying and delivering governing and financial documents to escrow. However, this would usually be paid by seller according to terms of negotiated purchase agreement.
- HOA dues in advance on per diem basis - amount unknown
Escrow fees and charges
- Escrow fees in Orange County would ordinarily be between $900 to $1,125 on a $500k property purchase.
- Loan tie in fee - unknown
- Document preparation - unknown
- Wiring of funds fee - unknown
- Courier fees - unknown
Mortgage and lender fees
- Property Appraisal for market value opinion - estimate of $400 to $600
- "Points" to lender to get a certain interest rate on purchase money loan - estimate 1% of loan amount in usual situation
- Loan Origination fees - if FHA loan this would be separate and covers lender's administrative costs in processing loan and regulates to a maximum of 1% of loan amount.
- Loan Discount points - possible loan "discount points" would be one-time charge imposed by lender or broker to either lower rate of loan, and this fee would vary.
- Credit Report Fee - unknown amount to cover cost of buyer credit report.
- Mortgage Broker Fee - unknown amount negotiable in each different situations
- Loan Processing Fee - administrative cost of processing your loan paperwork - amount unknown
- Hazard Insurance - Some lenders require advance payment of homeowners insurance premium.
Private Mortgage Insurance (PMI)
- Required by lender at close of escrow in most situations where buyer puts less than 20% down payment - amount unknown
Home Inspections
- Buyers must pay for their own home and property inspections. However, that would ordinarily be paid privately to the inspector and not through the escrow process.
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This is for information only about closing costs for home buyers at Orange County, CA, and is not the providing of legal or tax services. Some closing costs are negotiable between buyers and sellers in the contract. Others can possibly be negotiated with the providers. If you have questions about closing costs for buying a home, you should contact an experienced REALTOR in your community.
If you want to talk about selling, buying, or investing in homes and real estate at Newport Coast and Orange County, California, please contact me. Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com (email) - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs®.
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