closing costs

When you buy a new home, closing costs are unavoidable.  They are fees related to the real estate transaction above and beyond the purchase price – paid to the various third parties who helped facilitate your transaction.  A good rule of thumb to use when estimating these combined costs is 3% to 4% of the sales price.  

What All Is Included?

Included in closing costs are payments made to everyone who will participate in your homebuying process – from the Appraiser to the Underwriter.  Below are the commons associated with Closing costs.

1. Lender fees. Lenders will generally charge some if not all the following fees:

Origination fee, Appraisal fee, Credit report fee, Attorney fee, Processing fee, Underwriting fee, Discount Points(s).

1. Title fees. Certain closing costs are Title related – such as the:

Title search (or examination) fee, Lender’s Title Policy Insurance, Owner’s Title Policy Insurance, Escrow fee,

Additional fees.  In addition to lender and title fees, the title company will collect the fees for all other parties involved in your home purchase such as: Courier fee, Flood certification fee, Transfer fees, Recording fee, Survey fee.