Monday, October 11, 2021 / by Karri Bedor
Common Closing Costs:
Typically, buyers will need money for a downpayment and itemized closing costs. Your loan type will determine the amount needed for a downpayment. If you are able to put down at least 20% on your home mortgage, you will save due to the fact that you are not required to pay Private Mortgage Insurance (PMI). The amount you pay for PMI is determined from the amount of the loan. The amount is determined based on the estimated value of the home and your downpayment.
Some other costs home buyers may be subject to include:
Document preparation fee
Deed recording fee
These costs vary dramatically depending on the loan program you choose. It is usually a good idea for homebuyers to budget an extra $1500 to $3,000 for closing costs.
Sellers can expect costs as well. Some of these may include:
An owner's policy or title insurance. This cost typically runs a few hundred dollars.
Transfer tax is $3.00 per $1000.00 of the purchase price.
Property tax proration for the time the property was owned by the seller.
GAP endorsement is about $125.00.
Special assessment fee
Real estate broker fee
Again, you can, and should, go over these costs with your lender, so you don’t have any last-minute surprises that you didn’t budget for.
I’d love to connect with you to help with any of your real estate needs.