A Guide To Closing Costs
The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.
BUYERS can generally be expected to pay for:
- Application fee
- Appraisal fee
- Title insurance premiums (MTP)
- 1/2 of escrow fee
- Document preparation (if applicable)
- Recording charges for all documents in Buyer’s name
- Termite inspection (according to contract)
- Tax pro-ration and Homeowner Association dues (from date of acquisition)
- Homeowner’s Association transfer fee
- All new loan charges (except those required by Lender for Seller to pay)
- Interest on new loan from date of funding to 30 days prior to first payment date
- Assumption/chane of records fees for takeover of existing loan
- Beneficiary statement fee for assumption of existing loan
- Inspection fees (roofing, property inspection, geological, etc.)
- Home Warranty (according to contract)
- Hazard insurance for first year
- Survey
- Courier
- Federal Express to return package to lender
- These closing costs are always negotiable.
SELLERS can generally be expected to pay for:
- Real estate commission
- Document preparation fee for Deed
- Any loan fees required by Buyer’s lender
- Payoff all loans in seller’s name (or existing loan charges and/or delinquencies by Buyer)
- Interest accrued to Lender being paid off. Statement fee. Release fees and any prepayment penalties.
- Termite inspection (according to contract)
- Termite work (according to contract)
- Home warranty (according to contract)
- Any judgments, tax liens, etc., against the seller
- Recording charges to clear all documents of record against Seller and Home Owner Association
- Tax pro-ration (for any taxes at time of transfer of title and tax certificates)
- Any unpaid Homeowner’s dues
- Any and all delinquent taxes
- 1/2 of escrow fee
- Owner’s title policy (according to contract)
- Federal Express to send payoff
- These closing costs are always negotiable.
