Finances

HOW MUCH WILL MY CLOSING COSTS BE – FOR BUYERS

Unfortunately, the purchase price of your home is not the only cost you will incur in buying your new home. Below is a schedule of typical costs Buyers incur in purchasing a home in our area. If, however, your funds are insufficient to cover all costs, do no fret! Consult with your real estate professional – it is often possible to ask the Seller to cover a portion of these costs (“Seller assist”).

Pest Inspection	$50 approx. (paid before closing)
Radon Inspection	$135 approx. (paid before closing)
Mold Inspection	$150 - $225 approx. (paid before closing)
General Home Inspection	$250 - $400 approx (paid before closing)
Transfer Taxes	1% of Purchase Price
Lender Fees	These vary wildly from lender to lender and include such things as Application fee ($350 approx), Underwriting Fee, Administration Fee, Escrow Waiver Fee, Commitment Fee, Loan Packaging Fee, etc. This can amount to thousands of dollars in fees. It is essential that you get quotes and “Truth in Lending” statements from several lenders so that you know what all the “hidden” charges are– fees are negotiable.
Title Insurance	Less than 1% of the Purchase Price (approximately .006 - .008)
Title Endorsements	$150 approx.
Settlement Fee	Generally $100 - $125.
Recording Fees	To record the deed, Mortgage(s) and Assignment(s)– varies depending on the length of the documents – approx. $100 - $150
Notary Fee	$10 - $15 approx.
Property Taxes	Will be pro-rated between buyer and seller as of the closing date. You will pay for the days you will own the property during the year. If the seller has already paid the taxes, you will reimburse the seller for your share. If you will be paying the taxes at or after the closing, the seller will pay you their share based on the number of days that they have owned the home. The closing company makes these calculations.
Survey	To have a new survey prepared of the property. $250 - $400 approx.
Overnight Fees	The fee for overnight postal servicing of documents if you are not attending the closing -- $30 - $50 approx.
Flood Certification	$22 approx.
Settlement Authorization Fee	If you do not attend closing and have someone such as your Realtor sign the HUD-1 for you, you may be charged to prepare the “Settlement authorization” documents that will be needed for him/her to do this -- $50 approx. If you do not have a Power of Attorney and if one is required, you will also be charged for the preparation and recordation of that document.
Home Warranty	Available for You to Purchase at Closing -- $498

In addition to these costs, you should also expect to pay:

Interest on your loan for any “partial” month period (i.e., from the date of purchase to the end of the month you close in).
Your first year’s homeowner’s insurance premium. This amount will vary depending on the price of your home and the type of coverage you select.
An amount to establish a reserve for property taxes and insurance that will be paid in the future. Unless you choose to “self-escrow” (this option is only available if you have at least 20% equity in your home), your lender will set up an escrow account from which it will make these payments – this will start with the establishment of a reserve at your closing. The closing company will calculate the amounts needed for these reserves.
Occupancy Fee – may be required by the municipality your new home is in – $20 approx.

These are estimates only and may be higher or lower depending on the purchase price of your new home, the service providers involved in the transaction and the municipality your property is located in. They are provided simply to allow for an estimate of buyer costs. Consult your real estate professional and/or mortgage broker for a more accurate estimate.