| 
Buying a home involves a number of expenses, from inspection
fees to earnest money to closing costs. Here is a checklist
of just some of the typical costs involved with closing
a new home purchase.
|
Inspection fees:
Paid to a licensed inspector for inspecting your property
for defects, potential problem spots and needed repairs
prior to the final sale. Paid at the time of the inspection,
not at closing.
Homeowners insurance:
Must be purchased prior to closing. Insurance companies
typically charge the first year's premium up-front.
If an escrow account is established with the lender,
subsequent premiums are then factored into your monthly
mortgage payments.
Loan origination
fee:
Paid to the lender to cover the expenses incurred in
processing and providing the loan.
Appraisal fee:
Paid to an appraiser for appraising the value of the
property, in conjunction with the mortgage application
process.
Credit report:
Paid to a credit bureau on behalf of your lender to
obtain a copy of your credit report to help determine
your credit worthiness.
Flood Zone Determination
fee:
Paid to determine whether or not your property lies
within a flood zone.
Commitment fee:
Paid to the lender as part of the mortgage approval
process.
Prepaid interest:
Paid to the lender to cover any interest on the loan
from the closing date to the beginning of the next calendar
month.
Property taxes:
Paid to the city and/or county, but only if taxes are
due and unpaid at the time of closing. Otherwise, the
taxes are prorated, and the amount the seller owes is
deducted from the seller's proceeds and credited to
the purchaser to cover the tax bill when it comes due.
If an escrow account is established with the lender,
subsequent property tax costs will be factored into
your monthly mortgage payments.
Closing fee:
Paid to the closing agent to cover the costs involved
with closing on the property.
Abstract/Title search, Title examination:
Paid to a title or abstract company for researching
your title's history.
Title insurance:
Paid to a title company to cover the lender's policy.
An owner's policy will be made available to you, as
well, at the time of closing. For more information,
see our Title
Insurance FAQ».
Fee Schedule:
A list of the title and closing-related services we
provide, complete with our costs for each. |
