Closing Costs, There is a lot of confusion over what all is included in the closing cost of your purchase and who pays what. The answers varies between transactions. Here is a list of different items that could be on your closing statement. If you do not fully understand all of these items and who is responsible for payment of each between the buyer and the seller please feel free to contact me and I will be happy to help navigate each item with you on your next closing!
-Administration fee
-Appraisal fee & Appraisal review fee, Home inspection, Pest inspection: Unless paid for in full in advance
-Closing/escrow/settlement fee
-Courier fee
-Credit Report
-Document preparation
-Flood certification fee: Verifies if property is in a federally designated flood zone.
-Flood monitoring: Monitors flood zone remapping.
-Home warranty: If applicable
-HOA transfer fee
-Homeowner’s insurance: Usually required to pay the entire first year’s insurance at closing.
-Homeowners insurance impounds: Two months’ worth of premiums.
-Lender’s Inspection fee: On new property, verifies construction is complete with carpeting and flooring installed.
-Loan discount: also known as “Points.”
-Loan Origination Fee
-Loan tie-in fee: Closing agent’s services dealing with the lender.
-Mortgage broker fee; Mortgage insurance impounds; Mortgage insurance
-Notary fees
-Pre-paid interest: Accumulated interest between closing day and first payment.
-Property tax impounds
-Recording fees
-Sub-escrow fee: Title insurance company charges this.
-Tax service fee: Monitors payment of property tax.
-Title insurance: For clear title to the property.
-Underwriting fee
-Up front mortgage insurance premium
-VA funding fee: Paid to the VA for guaranteeing your loan.
-Warehousing fee: The cost of a “warehouse” line of credit.
-Wire transfer fee: Funds transfer from one account to another.