When buying a home, other than the down payment, your biggest expenses are CLOSING COSTS. What the heck are closing costs?
Closing costs
(About 2.5-3% of Sales Price)
· Attorney Fees
· Insurance
o Title Insurance – Required by lender
o Title Insurance – Recommended for buyer
o Home owners (Hazard) Insurance (up to 14 months in reserve)
o Private Mortgage Insurance
· Title search and binder
· Tax service fees
· Prorated
o Taxes (6 month in reserve)
o HOA Fees
· Escrow establishment fees
· Tax service charges
· Intangible Taxes ($3.00 per $1,000 borrowed)
· Recording fee(s)
· Courier costs/overnight deliveries
· Transfer tax (.1% of the sales price)
· Possibly initiation fees for HOA
· Status letter from HOA
· Fees related to getting the loan
o Origination charges
o Credit Report
o Pre-paid interest
o Application fees
o Appraisal (Paid in advance frequently)
o Flood certification
o Processing fees
o Government recording fees
Any additional “Points” chosen by lender and borrower
· As you'll notice, real estate commissions are not on this list. In most cases, the sellers pay the real estate commissions.
If I can explain about what all of these fees are, just call or text me. Al Maxwell 404-213-3804.
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