Closing Costs Breakdown

Having a little trouble understanding your transaction expenses?

This link explains who is liable for what when financing, or paying cash for your chosen property.

Conventional Mortgage
(Seller Expense)

  1. Real estate commission
  2. Search exam and closing fee***
  3. Process satisfaction of mortgage (25$) for each existing mortgage.
  4. Doc stamps on deed $.70 per $100 based on sales price***
  5. Courier fee if applicable
  6. Home warranty if applicable
  7. Taxes prorated to date of closing
  8. Pay off the existing mortgage(s)
  9. Owners tile insurance policy, if applicable, as per sales contract***

 
Conventional Mortgage
(Buyer Expense)

  1. Loan orientation fee and points
  2. Appraisal fee
  3. Credit report
  4. Tax service fee (approx. $55-$100)*
  5. Underwriting fee (approx. $100-$250)*
  6. Document preparation fee (approx. $100-$250)*
  7. Flood certification fee ($20-$50)*
  8. Prepaid interest (form day of closing to end of currant month )*
  9. First year PMI if applicable (over 80% loan value)
  10. First year homeowner’s and windstorm or flood insurance premiums if required.
  11. Escrow account for lender to pay real estate taxes and hazard (homeowners) insurance (taxes: 4-10 months of yearly gross amt / insurance: 2-3 months) and PMI (mortgage insurance) if applicable.
  12. Settlement fee
  13. Simultaneous issue mortgage (lender) title insurance policy.
  14. Owner’s title insurance policy, if applicable, as per sales contract.
  15. Endorsements to lender policy if applicable.
  16. Warehouse / notary / courier fee ($75-$150)
  17. Recording fees for deed (approx. $20) and mortgage (approx. $150)
  18. Doc stamps on mortgage $.35 per $100 based on mortgage amount.
  19. Intangible tax on mortgage $.002 X mortgage amount
  20. Assignment of mortgage if applicable (approx $15 – $25)
  21. Survey of subject property ($200- $400)
  22. Termite inspection if applicable (approx. $50-$100)
  23. Condominium approval and dues if applicable
  24. Homeowner association dues and transfer fees if applicable.
  25. Home inspection fees

 
Cash Transaction
(Seller Expense)

  1. Real estate commission
  2. Search exam and closing fee***
  3. Process satisfaction of mortgage (25$) for each existing mortgage.
  4. Doc stamps on deed $.70 per $100 based on sales price***
  5. Courier fee if applicable
  6. Home warranty if applicable
  7. Taxes prorated to date of closing
  8. Pay off the existing mortgage(s)
  9. Owners tile insurance policy, if applicable, as per sales contract***

 
Cash Transaction
(Buyer Expense)

  1. Recording fees for deed (approx. $20)
  2. Homeowners association dues and transfer fee if applicable
  3. Title exam / closing fee (approx. $100)
  4. Owners title insurance policy, if applicable as per sales contract.
  5. Condominium approval policy, if applicable (approx. $50)
  6. Survey at buyers option if single family home (approx. $200- $400)
  7. Termite inspection at buyers option (approx. $50-$100)
  8. First year homeowners insurance and flood insurance if applicable.

 
Closing Statement Hints

  1. Review closing statement prior to closing.
  2. Bring cashier’s check payable to tile agency to closing.
  3. Bring one legal form of photo identification issued by governmental agency (driver’s license or passport).
  4. Lenders seldom allow escrows for repairs
  5. Lenders may allow seller to pay buyers “prepaid items” (negotiable via contract)
  6. Lenders seldom allow credits on closing statements such as “lump sum” credits for closing cost or credit for repairs
  7. Even though it is included in the contract, do not assume that the lender has approved it (i.e. seller leaseback, ECT.) Check with the lender for special or unusual contract conditions and get approved for such in writing as soon as possible.
  8. Realtor or third party paid items require lender approval and should be noted on contract.