Buyer's Closing Costs
A real estate transaction involves several closing costs that you and the seller are expected to pay at the closing. Usually, the lender will provide a good-faith estimate of all closing costs.
The title company that handles your closing documents will be able to provide you with a estimate of the closing costs (HUD) at least 24 hours before closing.
The most common costs that you will have to pay are:
- Down Payment.
- Loan Origination.
- Discount fees or points, usually offered as a tool to lower your interest rate.
- Charges for a Home Inspection. Approximately $275-$400 depending on the size of the home.
- Home Appraisal required by the Lender. You can pay as much as $400 for an appraisal.
- Credit Report fee. $50
- Private Mortgage Insurance Premium( PMI).
- Home Owner's Insurance Escrow if you decide to add your insurance to the mortgage payments.
- An escrow of Property taxes if you are adding your taxes to the mortgage payments.
- Recording of the Deed. $60
- Survey. $200
- Notary Fees. $300
- Several prorations for your part of the costs such as utility bills, HOA and property taxes.
- Documentary stamp tax on a mortgage: . 35 %, intangible rax on a mortgage: .02 %
As a buyer, you must be prepared to pay these closing costs during the transaction closing process. These costs can easily add up although some costs can be negotiated.
Here is a Closing Costs Calculator to help you determine the approximate costs and fees that you are expected to pay when you close on a home loan.
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