Closing Costs and Pre-paids
The following is an approximation of many but not all of the costs associated with a
home loan. Depending on the type of loan and the terms of the Purchase Agreement
you sign, some if not all can be paid by the seller. This is how a borrower is able to
purchase a home with little or no out of pocket expense. I would be happy to discuss
this in greater detail at your convenience. Please feel free to contact me:
Closing Costs
Escrow Fee $250 Title Company as Escrow Agent
Attorney $75-200 Document Preparation
Mortgagee’s $150 Protects lenders lien.
Title Policy Determined by Home Sales Price
Recording Fees $30-60 Record documents at courthouse
Restrictions $25 Copy of Deed Restrictions
Survey $350-Up Required by lender
.
Credit Report $15-25
Origination 1% of loan amount typically
Appraisal $325-Up Lender required
Loan Discount ??????? Determined by lender
(Never pay points if you can avoid it.)
Lender Final inspection before closing
Inspection $75
Home Hired by you to inspect the home. Can be
Inspection $300-Up more for additional items inspected.
Tax Service $0-130 Lender (verifies taxes are paid)
Home Service $300+ Company you choose to provide maintenance
Contract contract on heating, a/c etc.
Pre-paids 14 mo. Home Owner's Insurance
Interest on Loan to end of month
Typically 3 mo. property taxes
PMI or MIP Reserves Usually 2 months of mortgage insurance
held in escrow account with lender
For additional information see the page entitled "Understanding PITI".
For any Real Estate Terms you are not familiar with click here.
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