The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.
The
information noted
below does not
include lender
fees or escrows
for taxes and
insurance. You
need to discuss
these particular
charges with
your lender of
choice.
When a buyer applies for a loan, lenders are required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Some typical buyer closing costs include:
- Intangible tax on mortgage at .20 per $100 of
mortgage amount ($100,000 = $200)
- Loan fees (points, application fee, credit report)
- Prepaid interest
- Inspection fees
- Appraisal
- Mortgage insurance
- First year homeowner's insurance and flood insurance,
if applicable
- Title insurance (lender's policy)
- Documentary stamps on mortgage at .35 per $100
of mortgage amount ($100,000 = $350)
- Recording fees for deed and mortgage
- Endorsement charges required by lender
- Homeowner's Association dues and transfer fee,
if applicable
- Condominium dues, if applicable
- Survey; survey affidavit (if no survey is required)
- Termite inspection, if applicable
 SUCCESS
STORY: "Ann and I want to
congratulate you on starting your own real estate
agency. You have studied and worked hard for this.
The way that you helped us showed me that you would
be very successful. When we first put our house
on the market, our previous agent (from another real
estate firm) did not recommend the right price nor
did he know how to market the property. After several
months we decided to take it off the market. We were
very unhappy.
When we came to you, you told us how you thought it
should be marketed. It was priced right and marketed
properly. You put our house on-line on Thursday. We
had people interested that same day. We had several
people view our property over the weekend; had at
least two parties wanting to purchase, and had it
sold for full-suggested price by Monday. It doesn't
get any better than that.
Yet it did get better. When we went out with you to
find a new house we were able to find the right one
on the first day. You were very helpful in arranging
financing and keeping the closings on track. Thank
you and congratulations."
Gary
and Ann Worthley (Land O' Lakes)
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