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March 18, 2013

Buying or Selling a Home

The Closing

What are some typical closing costs?

Closing costs usually include all or most of the following:

Appraisal fee This is the fee paid for an appraisal of the property. It is required by the lender and often is paid for by the buyer. The Federal Housing Administration and Veterans Administration establish the appraisal fees for mortgages that they guarantee.


Attorney's fee The buyer and seller pay the fee for their own lawyers. In some states, buyers are required to pay for the lender's attorney. This fee may be a certain percentage of the mortgage or a fixed fee.


Survey fee If the lender requires a registered survey, the buyer probably will pay the fee. You may be able to avoid this fee if the lender agrees to accept a recent survey done for the seller. However, the seller must sign a document stating that the property lines have not changed since the completion of the survey and there have been no additional improvements to the property since the survey was taken. Even then, a title insurance company may require a new survey unless the survey is current or has been recertified recently.


Loan discount fee (points) This is the lender's charge to the buyer to obtain the loan. The buyer may have paid some of this fee in advance to secure the loan.


Inspection fees Charges for general inspections or inspections required by local laws. The buyer or seller may be responsible for these fees depending on the contract and local law and custom.


Title fees Cost of title search.


Title insurance The cost of title insurance, usually divided between the seller and buyer. The seller pays for the buyer's policy and the buyer pays for the lender's policy.


Recording fees The cost for recording change of ownership such as a deed; the cost of recording the buyer's mortgage; recording the release of the seller's mortgage by the seller's lender; and recording the release of any liens found in the record of title.

>>What happens at the closing?
>>What is the closing statement?
>>What are some of the key documents signed at the closing?
>>What are some financial aspects of the closing?
>>What are some typical closing costs?
>>There can’t possibly be any more closing fees, can there?

Practical Law Home | Buying or Selling a Home | Basics of Buying a Home
Basics of Selling a Home | Why Real Estate Is Covered By Special Laws | Real Estate Brokers
The Purchase Contract | Financing a Home Purchase | *The Closing* | The Fair Housing Act
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