Closing Costs - Home Buying process provided by Helene Cass and Team specializing in McDowell Mountain Ranch
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Financing Your Purchase > Closing Costs

Closing Costs


Good Faith Estimate

Listed below are the closing costs that a buyer is likely to encounter when purchasing a new home. Hover your mouse over each individual item to provide information about the nature of the service and provide guidelines that can be used to estimate their costs.

It’s important to appreciate that the information offered here is simply a tool for prospective buyers to get a very preliminary idea of what the closing costs associated with a purchase might be. When it’s actually time to proceed with the purchase of a home, their lender will provide a more formal and precise estimate of the costs involved in the form of a “Good Faith Estimate” (click image at the right to see a sample).

Mortgage Application Fee Recording Fees
Credit Report Courier Fees
Origination Fee Homeowner's Insurance
Discount Points Flood Insurance
PMI Insurance Association Fee Impounds
Appraisal Association Transfer Fee
Survey Property Inspection
Tax Impounds Termite Inspection
Prepaid Interest Home Warranty
Escrow Fees Lenders Title Policy
 

Mortgage Application Fee:
The fee the lender collects to process the mortgage application. This fee varies from lender to lender.
Recording Fees:
This fee is paid to the County Recorder’s Office for the recording of the Deed and is typically $25.00.
Credit Report:
The fee charged by the lender to run the credit report. This fee varies between $15 and $50.
Courier Fees:
These fees are collected for the transfer of documents between the title company and the lender either by courier or electronically and ranges between $50 and $100.
Origination Fee:
The fee the lender charges for processing the paperwork on a new loan. It can be as high as 1% of the loan amount and can also be eliminated by paying a slightly higher interest rate.
Homeowners Insurance:
Lenders require that a 1 year homeowners insurance policy be placed on the property. The premium must be paid in advance.
Discount Points:
Also known as “Points”, one (1) point equals 1% of the loan amount. The interest rate on the loan is often quoted with no points. Paying points will buy down the interest rate. The more points you pay, the lower your interest rate will be and vice versa.
Flood Insurance:
If the property is located in a flood zone, the lender will require that a 1 year flood insurance policy be placed on the property. The premium must be paid in advance.
PMI Insurance:
Private Mortgage Insurance may be required if you have a down payment of less than 20% of the price. The first year’s premium is paid in advance at close of escrow.
Association Fee Impounds:
Some Homeowners Associations collect 2 – 3 months of HOA fees which are held in an escrow account.
Appraisal Fee:
$350 to $1,000, depending on the size and price of the home.
Association Transfer Fee:
A one time fee paid to the Homeowner's Association to transfer the account from the Seller to the Buyer. This fee is negotiable between both parties and can be anywhere from $100 to a percentage of the sales price.

Some Homeowners Associations may collect an additional one time fee called a Working Capital Contribution or Capital Improvement Fee. This does not apply to all HOA’s and again, the fee can vary from specified dollar amount to a percentage of the purchase price.
Survey:
Usually not required on homes in our area.
Property Inspection:
$200 - $500 depending on the size of the home & scope of the inspection (pool, spa, etc).
Tax Impounds:
An account held by the lender to pay future taxes. Typically, three months worth of property taxes are collected by the lender at the close of escrow.
Termite Inspection:
$40 - $100, depending on the size of the home.
Prepaid Interest:
The lender will require prepaid interest from the day of the closing to the first day of the following month.
Home Warranty:
$300 - $700 depending on the scope & type of coverage. This fee is negotiable between the Buyer & the Seller.
Escrow Fee:
A fee charged by the escrow company to handle the paperwork in transferring title, adjusting taxes, distributing funds, etc. The fee is based on the sales price & is usually split between the Buyer & Seller.
Lenders Title Policy:
This is an Insurance Policy which protects the lender in the event there is a future problem with the chain of title. The fee is based on the loan amount.

Clicking on this link will produce a printable worksheet that will be helpful in creating a personalized estimate of your expenses.

Please note, the Closing Costs sheet above is in Microsoft Excel format. You will need Microsoft Excel or a similar spreadsheet program to properly view and use the document.



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