Closing Costs for Residential Real Estate Transactions
"Closing Costs" are the fees which cover various services involved in the sale of residential real estate. Buyers and sellers negotiate to determine who will pay different portions of these closing costs.
Many of the costs associated with buying residential real estate are associated with getting the mortgage loan. Since Primemax Mortgage Group, NMLS#195523 has extensive experience with mortgages & closings, we can help you understand your closing costs.
Loan Estimates (LEs)
Buyers will get a "Loan Estimate" of closing costs around the time the loan application is submitted to the lender. This cost estimate comes out of our past experience. Please note that while our LEs are very accurate, we can't always estimate closing costs to the penny. We handle buyers' questions about these costs every day at Primemax Mortgage Group, NMLS#195523, so please be sure to contact us if we can help answer your questions.
Below is a general list of closing costs. We will provide you with a specific list of your closing costs when we deliver your Loan Estimate.
Standard Closing Costs
Loan-Related Costs
- Points — lower your interest rate (optional)
- Appraisal Costs
- Pulling Your Credit Report
- Interest Payment
- Escrow Fees
- Various Taxes
- Costs associated with "originating" your loan
Property Taxes
- Transfer Taxes & Recording Fees
- Insurance
Homeowners Insurance
- Title Insurance
- Flood or Quake Insurance if applicable
- Private Mortgage Insurance (PMI)
Are there any up front expenses?
Earnest Money
When a buyer & seller agree to buy in writing, there is a good faith deposit made to escrow. This is negotiated by your Realtor and can be
$500 to $1,500 typically. Escrow will hold the money and it will be counted towards your down and closing costs. We will need a copy of your updated bank account after this check clears for your credit at closing
Home Inspection
Your Realtor will recommend a home inspection by a licensed home inspector. I would let the Realtor refer this person as they can monitor the service and timing. The home inspection is to find any unforeseen issues that can be costly to you in the future. The cost can vary from
$200 to $500 depending on the level ordered. This also aids the Realtor to negotiate repairs with the seller.
Appraisal
This is a report we order typically after the home inspection. This is what the Investor will loan against. It also insures you are not over- paying. The cost is $500 to $600 depending on the loan program and the report required. Acreage properties have additional fees.
There may also be unforeseen costs including repairs the sellers are not willing to pay for, re-inspections from the appraiser etc.
Primemax Mortgage Group, NMLS#195523 can answer questions about these closing costs. Call us: 2565439211.