What are my closing costs when purchasing a home in Orange County CA?
Most of my home buyer clients ask me, "What are closing costs and how much will they be?" It often seems difficult to get a straight answer. About 1% to 1.5% of the purchase price.
Both sellers and buyers have closing costs but I will mention "Home Buyer" closing costs here. Search for homes in Laguna Niguel Here.
#1. Loan closing costs. This information comes from your lender and will vary. Roughly $450 for an appraisal,, lender fees for underwriting, etc which can be from $600 to $1800, one year fire insurance premium plus impounds for next year, say $1200, property taxes which totally depends on the time of year plus impounds (depends on city tax rate), prorated monthly HOA fee plus one more full month, messenger fees and if you have less than 20% down probably or VA or FHA you may have upfront mortgage insurance. Figure 3 months property tax impound or $2100.
#2. Points or buy down fees are charged if you want a lower interest rate that the current rate. We have not seen much of this in the last few years with all time low mortgage rates but it may come back into vogue. If you plan to live in the home for ten years or more it may make sense to buy down your rate but it will cost you in the short term. It could be several thousand dollars so check with the lender. Ask your lender.
#3. A lender loan title policy which depends on the price of the home ($750 on a $700K home) but does not exist for cash purchases. The title company wants to have this insurance guaranteeing free and clear title to the home which is their collateral. Ask your Realtor® or call the title company.
#4. Escrow fees. Ask your Realtor® or check with the escrow company.
Ron Buck, Realtor® bre#01364665
Ron Buck has been a real estate broker associate for 20 years with over 900 successfully completed transactions. He is a 15-year resident of Laguna Niguel and is an expert in south Orange County real estate. You can contact him at Ron@RonBuckGroup.com or 949.456.0505.