The following post comes from Coldwell Banker Vanguard Realty, Inc. agent, Kim Knapp. Kim is an experienced agent in Northern Florida and has a great team who has worked with countless first-time home buyers. Below is Kim’s list of closing costs that you should be aware that will potentially be expected of you at closing.
You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:
- Down payment
- Loan origination
- Points, or loan discount fees, which you pay to receive a lower interest rate
- Home inspection
- Appraisal
- Credit report
- Private mortgage insurance premium
- Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
- Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
- Deed recording
- Underwriting and Doc preparation
- Land survey
- Notary fees
- Prorations for your share of costs, such as utility bills and property taxes
A Note About Prorations
Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.
[…] Common Closing Costs for First Time Buyers You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for: […]
[…] Common Closing Costs for First Time Buyers […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] they wish to settle on and you likely have yours. The seller’s agent is going to likely run a closing cost estimate for you that will project your costs based on the offer price made. There are closing costs […]
[…] Common Closing Costs for First Time Buyers […]
Thank you for this great article! Additional expenses come up throughout the home-buying process. Some of these are upfront or out-of-pocket. Experienced buyers probably are familiar with these charges but first-time buyers can be caught off-guard. Remember to ask lots of questions especially regarding costs or fees.
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