- Down Payment – Depends on your type of loan.
- Loan Origination Fee and Points – This is generally 1% of the loan amount. Most lenders will waive the origination fee in exchange for a higher interest rate if you choose.
- Appraisal Fee – Appraisal fees vary based on the size and price of a property. A typical appraisal fee is $350 to $500.
- Credit Report – $25 to $85 for each credit report pulled.
- Survey – If needed
- Termite Inspection – Required by lender, Seller pays on VA Loans.
- Building/Property Inspection – Highly recommended. Fees vary based on the size of the property. Generally around $250 to$400.
- Private Mortgage Insurance (PMI) Conventional Loan – A borrower is required to pay PMI when at least 20 percent of a home’s purchase price is not provided as a down payment. Private mortgage insurance is paid by the borrower, but it benefits the lender. It protects the lender against loss if a borrower defaults on a loan. Mortgaged Insurance Premium (MIP) is required for government loan programs FHA, VA, and USDA Loan to values (LTV) greater than 78 percent. LTVs less than or equal to 78 percent do not require MIP.
- Flood Certification Fee – Usually required by lenders if your home is located in a flood plain area.
- Homeowner’s Insurance – Required if you have a mortgage on your home. It provides protection for damage to your home, any secondary structures on your property, and your belongings. You pay for a full year insurance policy at closing plus 2 months to get your impound account going.
- Property Taxes – Property taxes are paid in April and October. The title company will collect a pro-rated amount for taxes through closing.
- Home Warranty – Home warranty policies offer protection for one year after the sale of a home. This fee is also negotiable, but Buyers often ask the Sellers to pay for it. Basic home warranty coverage starts around $350 with optional coverage for pools, appliances, and premium coverage at an additional cost. Make sure to evaluate each protection policy as the terms and conditions vary from policy to policy and company to company.
- Escrow Fees – This is the title company’s fee for handling the sale. This fee is split 50/50 by Buyer and Seller.
- Prepaid Loan Interest – The interest due on your loan is paid in arrears every day until the end of the month in which the closing is held. If you close on the 15th, you will owe 15 days of prepaid interest. If you close on the 29th, you might only have a day or two. That is why closing escrow later in the month is the best way to minimize prepaid expenses.
- Recording Fees – You will not own the property until it has been recorded with the county. Therefore, you will not receive keys to the property until recordation is complete. Fees range from $25 to $85.
- Notary Fees
- Federal Express (if needed)
- Homeowner’s Association – A transfer fee can be negotiated and paid by either party. Most neighborhoods have a transfer fee of $300 to $500. Some HOAs have Working Capital Fees and Enhancement Fees. These are fees the HOA receives upfront for reserves.
* Buyer Assistance – Some Buyers ask the Seller to help pay 3% of their closing costs, and most Sellers will cooperate, particularly if the Buyers offer is close to the full asking price.
