Typical Closing Costs for Buyers
On the day you
actually settle on your new home, in addition to any
down-payment and the prepaid property taxes and
homeowners insurance premium, you'll need to bring a
certified check for various fees. These expenses are
known as closing costs.
Some closing
costs you will pay up-front when you apply for a
mortgage, such as your application fee and appraisal
fee.
Other closing
costs should be considered when evaluating your
financial situation. These may include, but are not
limited to:
- Transfer
Tax - typically, Buyers pay 1% of the purchase price
- Title
Insurance fee - required by the lender this is a
one-time fee to insure clear title to the property
- Lender
fees - loan origination, private mortgage insurance,
points, commitment fee
- Escrows -
lender held monies to pay future property taxes and
homeowner's insurance
- Settlement
fees
-
Transaction fees
- Recording
of your deed and mortgage
- Notary
fees
-
Water/sewer, trash prorations if applicable
NOTE: Ask
your lender for a Good Faith Estimate which will outline
your costs and show you the total monies needed for
settlement. Consider closing costs when choosing one
mortgage plan over another. In some instances, it may
be possible to structure your offer to ask the seller to
pay some of your closing costs.
