The cost of buying a property goes beyond simply by paying the price negotiated between the buyer and seller. Here are some of the common fees included in a typical settlement, which will comprise your closing costs:
Title & Escrow Related Closing Costs:
- Closing fee for the settlement agent Ö Document preparation
- Notary fees
- Escrow Fee (based on Purchase Price) Ö Courier Fees
- Loan-Tie-In Fee
- Electronic Document Delivery Fee
- Owner’s Title Insurance Policy Coverage (based on Purchase Price)
- Lender’s Title Insurance Policy Coverage (based on Loan Amount)
Loan Related Closing Costs:
- Loan Origination Fee
- Loan Discount Points (optional)
- Appraisal Fee
- Credit Report Fee
- Interest Payment
- Underwriting Fee
Goverment Related Closing Costs:
- Fee to record the deed, mortgage and any releases
- County and possible city transfer taxes (see reference chart attached)
Escrow Impound Account:
- Homeowner’s Insurance premium for the year
- Mortgage Insurance (if any) – the number of months varies
- Property Taxes – usually 2 months in advance
Additional Settlement Fees may include:
- HOA Documents, Termite Inspection, Home Inspection, Land surveys, Flood certification, Lead-paint Inspection , Roof Inspection, etc. please check with your real estate agent in regards to these fees.
All of the above fees will be reflected on the HUD-1 Settlement Statement during signing. Always ask your Escrow Officer if you have any questions on any of the fees disclosed.
