When purchasing a new home, be sure that you are well-prepared and informed. Watch out the market rates. Take very good care of your credit. Do not open any new account or be behind in any of your debts. And research lending or mortgage companies. Be sure you are dealing with reputable companies offering good rates.
There are 2 fees that you pay when you purchase a home: (1) Title examination and document preparation fees and (2) Prepaid or escrow real estate taxes and insurance. You may also pay loan origination fees to the mortgage company. The costs stated below are approximate. Check with your agent to find out the actual closing costs.
1)
Title Charges Attorney fee - Legal services for title examination, title insurance and loan closing processing. COST $400 to $450.
Title Insurance - COST $2 per $1,000 coverage up to $100,000; $1.50 per $1,000 in excess of $100,000.
2)
Transfer Charges Recording fee - Recording fees for deed and all other documents. COST $25 (avg)
3)
Additional Charges Survey - Required to show the exact location of the house and lot line. COST $200 to $300.
4)
Loan Items Appraisal - Statement of property value made by an independent appraiser: CONVENTIONAL $300; FHA $300; VA $300.
Credit Report - Report from a reporting agency covering your credit history: $60.
5)
Prepaid Items - Funds paid by the buyer and held in account by the lending company to ensure future payments.
14 months' hazard insurance
2 months' mortgage insurance
No. of months that taxes are prepaid depends on month of closing.
