It’s tough enough to get that home purchase financed these days. However, don’t rest after that effort. You still have to contend with high closing costs. You’ll do better to be well-informed upfront so that you can minimize these costs and keep more of your money for – YOU
The Good Faith Estimate (GFE) that is provided before you choose lenders enumerates many of the costs. The final Settlement Statement (HUD-1) will give you a summary of the damage. In between these two is where you incur the fees. The most common ones are: Fees paid once. These are appropriately called, Non-Recurring Fees.
– fee for appraisal
– fee for inspection
– title insurance policy fees
– Title Processing and Search fees
– Escrow Company Fees
– miscellaneous fees such as notary, wire fees, courier service fee, etc.
– attorney fees – if any
– endorsements – from hoa, etc.
– fees for recording
– state, county or city transfer taxes
– Warranty Policy Charges
– natural hazard disclosure reports
– fees for lender, including origination, broker, underwriting, credit report, etc.
– real estate agent commission (seller paid)
Recurring Closings Costs are the ones that you’ll pay routinely.
– taxes on the property
– Homeowners Insurance (aka Hazard Insurance)
– flood insurance
– earthquake insurance
– private mortgage insurance (pmi)
Smart shopping helps you to minimize the fees. It’s common to compare rates, fees and terms at 2-3 lenders before choosing. Work with your Realtor to insure that smart choices are made regarding all the support services.
Smart negotiating helps you to shift the cost to others as much as possible. It’s all open to negotiation. So, think “total cost to own” and don’t leave any items out. It will make you a smarter buyer and a lot less stressed at closing.
The Rocky Rockwood team at Rancho Palos Verdes Home are dedicated to negotiating the very best deal clients – sellers and buyers. For more information, visit Rancho Palos Verdes Home Listings.