Buyer 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.
Your lender is your best resource for Buyer’s 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, I would need to know your 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. We can figure out your estimated closing costs based on your loan or if you are paying cash. But we need more information from you regarding that.
Detailed Buyer Closing Costs
- 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 the date of funding to 30 days prior to the 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, townhome 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 or County 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.
Can I ask the Seller to pay for buyer closing costs when I make an offer?
Yes. Closing costs are a negotiable item when submitting an offer on a property.
Buyer Closing Costs Average About 3% of the Purchase Price
All of your buyer 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.
Buyer Consultations in the Beginning save time
Let’s meet in person before you go to see a home or condo. Let’s talk about your goals, what you desire in a property and your timeline.
Read about our 14 questions to ask every lender so you know all of the steps necessary to buy a home and what costs are involved.
