Buyer FAQ: What makes up my closing costs?
I get asked very often what makes up buyer closing costs and how much will they be.
Closing costs can be broken down into several categories:
Loan related fees
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Any loan origination fees or points being paid to your lender
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Appraisal fee (if not paid upfront)
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Credit report fee
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Flood certification
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VA funding fee (if applicable)
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Any upfront mortgage insurance premiums
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Interest charges from the date of closing to the first of the following month
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First year homeowner insurance
Escrow
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Several months of property taxes and home owner insurance premiums
Title Fees
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Lender's title insurance
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Owner's title insurance
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Settlement fee
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Title search
Transfer Taxes
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Costs to record the deed with the county
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State and County transfer taxes
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State recordation taxes
Reimbursements to Seller
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Taxes, HOA dues, etc that the seller had previously paid
Other
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Any commission to your real estate agent
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HOA dues
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Costs to transfer HOA account
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Survey
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Termite inspection
The exact amount of the closing costs will vary based on the price of the home being purchased, the location of the home, lender fees, and the terms of the contract. Closing costs in PG County are usually between 3 and 6% of the purchase price.
In some situations, buyers can negotiate so that sellers will pay a portion of these closing costs.
It is important to remember that these closing costs are in addition to any down-payment required by your lender.
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