Buying a Home Tips
Before You Buy
Preparing to Buy
Home Buying Process
12 Things to Know
Real Estate Agency
Buyer Representation Competitive Market Analysis
Making a Winning Offer
Home Warranties
Home Inspections
Title Insurance
What is an Escrow?
What happens at Closing
Closing Costs
Mortgage Tips Selling a Home Tips Southern California Realtors Relocating Tips Real Estate Glossary Real Estate Articles Extra Extra | All closing costs are spelled out in a closing statement (also known as a HUD-1). When you talk to your lender, they will give you a Good Faith Estimate of your estimated closing costs. Realtors® can provide a similar statement called a Buyer's Estimated Closing Statement or Seller's Net Sheet for the seller. For the Buyer Estimated Closing Costs, the Realtor would need to know the loan amount, interest rate and what the lender fees are for the loan. Your best bet is to get the Good Faith Estimate from your lender.
The Buyer can generally be expected to pay for:
- Title Insurance Premiums for a title policy on your property
- Escrow Fee - is for the escrow company to process all of the property documents
- Document Preparation Fee
- Notary Fees - a fee is charged to notarized documents that will be recorded at the county recorder's office.
- Recording Charges for all documents in the Buyer's name
- Interest on new loan from date of funding to 30 days prior to first payment
- All new loan charges - this could include a fee for credit reports, applications, etc.
- Tax Proration - a prorated amount from the date of ownership.
- Homeowner's Association Transfer Fee (if a condo, town home or planned unit development)
- Home Warranty (most sellers in southern California are asked to pay for this item in a purchase contract)
- Any City Transfer Tax
- Fire Insurance Premium for the 1st year. Call your favorite Insurance Company after your offer gets accepted so they can begin work on an insurance policy for your new purchase of a home, condo, luxury estate or income property
All of your closing costs will be spelled out in your final closing statement provided by the escrow company. Closing costs typically run 3 to 5% of the purchase price. That is why it is important to meet with a lender in the beginning of your real estate adventure and look at the costs involved so you can make wise decisions. |
