Forget the purchase price, earnest money deposit and down payment. Today’s home buyers also have to be prepared to incur hefty closing costs. It’s important to be aware of these charges upfront. That way you can work closely with your Realtor to negotiate away and reduce as many as possible so that you get the best possible deal.
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.
– Appraiser Fee
– inspection fees
– Title Insurance Fee
– title search fees
– escrow fees
– miscellaneous fees such as notary, wire fees, courier service fee, etc.
– attorney fees – if any
– hoa and other endorsement fees
– fees for recording
– State or County (or municipal) Transfer Tax
– home warranty policies
– Natural Hazard Disclosure (NHD) Fees
– fees for lender, including origination, broker, underwriting, credit report, etc.
– Real Estate Broker Fees (Comm. usually paid by Seller)
Recurring Closing Costs – these are costs that you pay a pro-rated amount for upfront, at closing
– property taxes
– homeowner’s insurance coverage
– flood insurance
– Earthquake damage coverage
– Private Insurance on the Mortgage
Your Realtor will help you to minimize all the costs. Shop for services to be sure you are not over-paying.
Remember, every item is negotiable. So, try to get the seller to pick up as many of these fees as possible. Knowing all the fees will make you less stressed at closing and, hopefully save you a few bucks, too!
The Rocky Rockwood team at Rancho Palos Verdes CA Homes are dedicated to negotiating the very best deal clients – sellers and buyers. For more information, visit Rancho Palos Verdes Home Listings.