please send me more information on this community

    X
    NEWSLETTER SIGN UP

      Your Name

      Your Email

      Main Content

      A Guide to Closing Costs

      With all types of loans, there are costs involved for the buyer and the seller. As the buyer, you will provide Earnest Money and an Option Fee upfront and when you close, this money will be applied to the closing costs. A general rule of thumb is anywhere from 3-4% of the contract price. A lender will be able to narrow this down and estimate better once you have a contract.

      The Buyer can generally be expected to pay for:

      • Loan policy and endorsements
      • Record warranty deed
      • Record the deed of trust
      • Courier fee
      • Escrow fee
      • Tax service fee (lender charge)
      • Full-year homeowner’s insurance policy (lender charge)
      • 2-3 months of hazard insurance escrow (lender charge)
      • Tax Reserve (lender charge)
      • Loan application and/or discount fee (lender charge)
      • Appraisal (lender charge)
      • Credit Report (lender charge)
      • Lender document preparation (lender charge)
      • Flood certification (lender charge)
      • Mortgage insurance premium – MIP or
      • PMI (lender charge)
      • Survey
      • Homeowner’s association dues and fees
      • Guaranty Fee
      • Any other costs as outlined in the real estate contract
      • Inspection Fees

      The Sellers can generally be expected to pay for:

      • Loan Payoff (per existing lender’s payoff letter)
      • Owner’s Title Policy premium (unless negotiated by buyer)
      • Record release of existing liens(s)
      • Current year real estate tax pre-ration (per contract)
      • Prior year’s property taxes still due (if due)
      • Homeowner’s association dues and fee (if applicable)
      • Escrow fee
      • Commissions (per listing agreement)
      • Any other cost as outlined in the real estate contract
      • Tax Certificate
      • Attorney Documents Prep Fee and Deed and Release
      • Homeowner’s Transfer Fee (if applicable)
      • Guaranty Fee
      • Any other costs as outlined in the real estate contract

      Negotiated Under Contract:

      • Inspections
      • Termite Work
      • Home Warranty Seller Contributions

      I will give you a quick summary with a net sheet to see how this may look at closing!