Schedule of Home Buyer's Closing Costs

Just what are closing costs? Closing costs are those expenses associated with the closing of a real estate transaction.

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Examples of closing costs are mortgage origination fees (i.e. commissions), title fees, recording fees, excise taxes, and various other fees and expenses. It is important to keep closing fees in mind when you are planning to buy and sell a home. Use this schedule to help plan your real estate transaction and make sure that the numbers work out.

Fees paid to the lender:

Loan origination fee - This expense is the commission that is paid to the mortgage broker. Loan origination fees are typically 1 percent of the loan amount. Buyers have the option of paying points to buy down the interest rate.

Appraisal fee - Appraisal fees range in price from $200 for a drive bye appraisal to $400 for a full appraisal. Appraisals are necessary for the lender to ensure that the property is worth the selling price.

Credit report - Lender's pull your credit report as part of the loan approval process. Credit report pulls range in price from $25 to $75.

Processing fee - The lender will charge a processing fee of $100 to $400. This fee covers the lender's overhead for doing the paperwork for the loan process.

Loan application fee - Some lenders will not charge a fee for this. Other lenders will charge a price up to $500.

Pre-paid interest - Buyers begin paying interest on the date the mortgage closes. The pre-paid interest period runs from the closing date through the end of that same month.

Tax and insurance escrow - Lender's usually require a tax and insurance reserve of 2-3 months (one third to one half) for the escrow account. This is to cover the property tax and homeowner's insurance for the home.

Tax escrow service fee - Lenders charge a small fee to set up the tax escrow account. The fee ranges from $40 to $100.

Title insurance fee - The buyer usually gets to pay the premium for the seller's title insurance policy. The cost varies with the purchase price of the home you are buying. The cost will likely be in the $200 to $500 range.

Title endorsements - Lenders require special endorsements to the title for certain types of property and mortgages.. Examples of special endorsements are adjustable rate mortgage endorsements, condominiums endorsements and environmental lien endorsements.

Other fees:

Title fees - These are fees paid to the title company for processing the title report, etc. The fees range in price from $200 to $500. They can even exceed the top of the range in certain circumstances.

Title insurance - Buyers also need a title insurance policy. These vary in range from $200 to in excess of $1000.

Recording fees - These fees are paid for the recording of the deed and mortgage and cost $25 to $75 for each document recorded.

Move-in fees - Condominiums usually charge a move-in fee. These fees vary greatly and can be as little as $50 or as much as $500.

Condo/Co-op fees - Condominiums and co-ops may charge fees for things such as credit checks, association transfers and building deposits.

Flood certification fee - Lenders have to determine whether the home you are buying is in a flood zone for insurance purposes. This fee costs $10 to $50.

Excise taxes - These are paid to your local government. Some governments charge a flat fee while others charge a percentage based on the sale price of your home. These taxes vary too much from area to area to accurately list here.

Fees will vary depending on the lender, title company, location of the property, amount of loan, and type of loan. We've provided some examples of closing costs so you can see an approximation of how much closing costs might be.

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