Tuesday, March 21, 2017

Buyer Be Aware: Closing Costs

According to a recent survey by ClosingCorp, over half of all home buyers are surprised by the closing costs required when purchasing a home.  The survey results indicated 17% of home buyers were surprised that closing costs were required at all.  Another 35% were surprised at how much higher the closings costs were than what they expected.  The costs most home buyers were surprised about were the mortgage insurance, bank fees and points, property taxes, title insurance and appraisal fees.

For the Buyer, closing costs are typically between 2% and 5% of your purchase price.
Closing costs may include:

  • Loan Origination fee
  • Discount points
  • Appraisal
  • 1/2 escrow fees
  • Document preparation fees
  • Underwriting
  • Mortgage title policy
  • 1/2 county transfer tax  (in Washington County)
  • Prepaid interest
  • Prepaid home insurance
  • Recording fee
  • Processing fee courier and wire transfer
  • Credit report
These costs are typically paid at the time of closing when signing final closing documents and just before recording the sale with the county.

Buyers should be aware they may have additional fees during the sale process, such as home inspection fees, radon tests, septic inspections or sewer scopes, well flow tests, and land surveys (if needed) all of which are paid at the time of the inspections.

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