An asterisk (*) marks non-recurring closing costs, which are paid by the buyer only once, at closing.

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diana@dianagarrett.com

Closing costs

Approximate cost

Who usually pays?

Mortgage points or origination fee*

1 to 2 points, each point equaling 1 percent of the loan amount. One point on a $100,000 loan is $1,000. (No-point loans are available).

Buyer.

Credit report*

$50 per person or married couple.

Buyer.

Property appraisal*

Varies, from about $200 and up.

Varies usually Buyer.

Flood certification* (Lender requirement to determine need).

Approximately $50.

Buyer.

Tax service* (Lender requirement).

Approximately $80 -100.

Buyer.

Mortgage document preparation and miscellaneous fees (such as an appraisal review).

Varies, from a few hundred dollars and up.

Buyer.

Assumption fee* (If buyer is assuming existing loans).

Varies; often 1 percent of loan amount(s).

Buyer.

Proration of interest (Lender collects interest to cover the period from closing to the first regular monthly payment date).

Depends on closing date: interest to can cover from 1 to 30 days.
Interest is paid in arrears.

Buyer.

Mortgage insurance (MI) premium (To cover the lender in case the buyer defaults.  Usually required on first mortgages for more than 80% of the purchase price).

Varies.  Some MI programs require a fully year’s MI premium paid at closing (from about .05 to 1% of the loan amount).  Others only require 2 months’ MI premiums to be paid at closing.

Buyer.

Impounds (Usually required when the loan amount is 90% or more of the purchase price). 

2 months of hazard insurance, property taxes, and mortgage insurance.  More may be required, depending on when the property taxes are due.

Buyer.

Title search or abstract* (This fee is charged by the Title co

Varies for Seller determined by price, for Buyer depends on endorsements

Varies; Buyer or Seller.

Title insurance for Buyer*

Varies with purchase price.

 Seller  

Title insurance for lender*

Varies with loan amount.

Usually the buyer.

Surveyor’s fee*

Varies; often not done.

Varies; Usually  Buyer

Real estate brokerage commission*

Varies; a percentage of the sale price.

Seller.

Attorneys’ fees* (Not part of all home sale transactions).

Varies; usually from a few hundred dollars to 1% of sale price.

Buyer and Seller usually pay their own attorney fees if needed.

Hazard insurance

Varies.  Most lenders require first-year premium to be paid at closing.

Buyer.

Property taxes, rents

Varies.

Buyer and seller usually pay their prorated share based on the closing date.

Assessments

Varies; may be none.

 Usually Seller but, sometimes negotiable or
prorated.

Liens against the property

Varies; may be none.

Seller.

Homeowner’s association dues

Varies; may be none.

Buyer and seller usually pay their prorated share based on the closing date.

Homeowner’s association transfer fee*

Varies; may be none.

Often the seller, but negotiable.

Title company for settlement preparation fee*

Varies; usually $240.

Varies; usually split between Buyer and Seller.

Miscellaneous document preparation, notary recording fees*

Varies; about $100 to $250.

Buyers and sellers each usually pay for their own respective documents.

Home inspection fees*

Varies; about $200 to $500 or more, depending on square footage of the home.

Buyer.

Home inspection repairs*

Varies; may be none.

Negotiated; Buyer, Seller, or shared.

Termite inspection fee*

Varies: about $100 to $200 or more.

Buyer or seller.

Termite repair work*

Varies; may be none.

Often Seller, but negotiable.

Home warranty*

Varies; from about $250 and up.  Available in most states.

Negotiable.