CLOSING COSTS FOR BUYERS

Dated: 02/05/2018

Views: 126

Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing costs vary widely based on where you live, the property you buy, and the type of loan you choose. In this article we outline closing costs when you purchase a home with financing.

Image title


Typically, home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. Here is a list of fees that may be included in closing.  

  1. Application Fee:This fee covers the cost for the lender to process your application.

  2. Loan Origination Fee: which lenders charge for processing the paperwork for your loan.

  3. Credit Report Fee: for running your credit report.

  4. Underwriter Fee: for the underwriter, who assesses your credit worthiness.

  5. Home Appraisal: of the property you hope to own to make sure its value matches the size of the loan you want.

  6. Title Search:  to unearth any liens on the property that could interfere with your ownership of it.

  7. Private Mortgage Insurance (PMI): If you’re making a down payment that’s less than 20% of the home’s purchase price, chances are you’ll be required to pay PMI. If so, you may need to pay the first month’s PMI payment at closing.

  8. Homeowners’ Insurance: This covers possible damages to your home. Your first year’s insurance is often paid at closing.

  9. Survey Fee: if it's a single-family home or town home (but not condos).

  10. Taxes: also called stamp taxes, on the money you've borrowed.

Copyright © 2017 Avanti Way Realty, All rights reserved.
Article Source: RealtorMag.Org

Blog author image

Mili Del Carpio

Always holding client satisfaction as her highest priority. Clients working with her never fail to appreciate her enthusiasm, professional integrity, and efficiency. After attending the University....

Latest Blog Posts

Importance Of The Inspection Process For Buyers

Inspecting the physical condition of a house is an important part of the home-buying process and should be included in your purchase contract as a condition of closing the sale. It is important to

Read More

Buying Real Estate Under LLC

If you own your own business, chances are you have a limited liability company (LLC) or, at the very least, you know what that is. Business owners may choose to buy a home using an LLC or under

Read More

Fees Included In Closing Costs For Buyers

Closing costs vary widely based on where you live, the property you buy, and the type of loan you choose. In this article we outline closing costs when you purchase a home with financing.Typically,

Read More

Financing Requirerments To Buy A Home

Mortgage lenders require paperwork that verifies every facet of your financial life: income, debts, assets and more. The lender will request the following documents, so it is very important to

Read More