Closing Costs What you need to know
Who Pays What?
Buyer and seller fees
Closing costs are fees paid by the buyer and the seller during the course of the transaction. Early in the process, we will provide a good faith estimate which includes your closing costs and settlement charges. Typically, a buyer’s closing costs are about 1% of the purchase price of your home. A few days before closing, your lender will give you a detailed breakdown in the Closing Disclosure Statement. What’s Included? Closing costs include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees, initial deposit for your escrow account, home-owners insurance, and credit report charges. In addition, there are non-recurring costs and pre-paid costs. Non-recurring costs are one- time fees associated with buying a property or getting a loan. Prepaid costs are those that recur over time, such as property taxes and homeowner’s insurance.
Many fees are negotiable, however:
Buyer typically pays: • Loan and appraisal fees required by your lender • Title insurance premium for your lender • Fire and hazard insurance premium • Inspection fees if not provided by the seller • One-half of city transfer tax, if applicable
Seller typically pays: • Inspection fees
• Real Estate commissions • Any judgments or liens • Any unpaid homeowner’s dues • County transfer taxes • One-half of city transfer taxes, if applicable • Delinquent property taxes
Source: zillow.com/mortgage-learning/closing-costs/
Von Kaenel Giambruno Real Estate Group | 21
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