CLOSING COSTS:
Closing costs generally run between 2-4% of the purchase price for your home. A lot depends on your loans points and origination fees, which are disclosed on your loan estimate. These are the fees that your lender charges to make the loan and they vary depending on your loan and rate. Also included in your closing costs oftentimes are impound account fees. You can choose to pay your taxes and insurance in your monthly mortgage payment but usually 6 months to a year of taxes and insurance is required up front and included as a part of your closing costs. You can forego impounding these costs into your loan, however you will have to pay your taxes twice a year in larger sums and your insurance is usually billed yearly.
The buyer can generally be expected to pay for:
Lender’s title insurance policy
One half of the sub-escrow fee
buyer’s escrow fee and processing fee
document preparation (if applicable)
email loan document fee
notary fees (as applicable)
recording charges for all documents in buyer’s name
tax proration (for any taxes unpaid at the closing)
homeowner’s transfer fee (according to contract)
all new loan charges
interest on new loan
Home warranty – according to contract
City transfer tax - according to contract
Fire (homeowner’s) insurance premium for first year
Next month hoa dues (if applicable)
Messenger fees