What are my closing costs?

Another common question from buyers as well as sellers is, "what are my closing costs?"  Some typical closing costs in real estate transaction are

Title search fee — is the assurance of clear title to the property and title insurance to defend against any future claims made on the title by circumstances that were not picked up at the time of the title search.  This fee is based on the price of the transaction.  It will vary from one company to another but they usually pretty close to each other.  Traditionally the seller will buy the title insurance policy to protect the buyer, and the buyer will buy a title insurance policy to protect the lender that is providing the loan for the transaction.

The appraisal fee
— this fee is paid by the buyer to have a professional appraiser give their value of the property.  The appraisal is based on recent comparable sales.

Prorated property taxes, utilities, and association fee — these fees are based on the percentage of the year, or month in terms of utilities such as water and sewer, that you own a home.

Insurance fee — you can usually expect to prepay the first year of your insurance premium

Recording fees — these are fees charged to record the change in ownership usually by the county.

Document fee — these can be fees for drawing up different documents involved in the transaction.

Escrow feea
— this fee is usually shared by both buyer and seller and pays for the escrow company that is handling the transaction.

Credit report fee
— this fee is for the lender to render buyers credit report.

Other miscellaneous fee — these can include courier fees, electronic transfer fees, flood determination fees, digital storage fees, retrieval fees, underwriting fees, wire transfer fees, tax service fees, e-mail document fees. You won’t necessarily be paying all of these, but you will pay some of them.is

Loan origination fees and discount points
— the loan origination fee can vary from 0.5 % to about 2% of the loan amount pays for the cost of providing loans.  Discount points are percentage of the loan amount paid to buying down the loan rate, resulting in a lower monthly payment.

Sellers additional fees — the seller will also pay a percentage of the sales price in excise tax to the county, and commissions to real estate agents.

You real estate agent can usually give you a pretty close estimate of what most of these fees will be.

Here is video using simple drawings is that talks about closing costs,I didn’t make it but it has some good points, even if it is a bit cheesy.

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