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FAQ: What are some fees a buyer should expect to pay at close of escrow?

Posted by: raindrop 6 years, 4 months ago

(Comments)

In addition to the purchase price, there are a number of fees that Buyers may incur during escrow.  

It is important that Buyer's are educated on what costs may come up, so that they can make an educated decision on whether they can afford to buy a home.

Many fees are associated with loans, so if you are considering buying a home with cash, the following fees would not apply.  With that said, occasionally some or all of the following fees can be incorporated into the loan amount.  Any specific questions that you have about lender fees, you should discuss with your lender.

 

Loan related fees:

    1. Origination Fees
    2. Insurance Impounds
    3. Discount Points
    4. Credit Report Fees
    5. Interest Adjustment Fees
    6. Mortgage Insurance Premiums
    7. Lender's Title Insurance Policy
    8. One-time mortgage insurance premium (for FHA mortgages)
    9. Tax Impounds
    10. VA funding Fee (for VA mortgages)
    11. Notary Fees
Misc. Fees:
    1. 1/2 of the escrow fee
    2. Appraisal fees
    3. Home Owners Association Fees, if applicable
    4. Pre-paid Home Owner's Insurance
    5. Documentation Fees
    6. Inspection Fees such as home inspection, roof inspection, etc.

Keep in mind that the Buyer does not pay for their Realtor's commission, which is a great reason for Buyer's to be represented by their own Realtor.  Oftentimes Buyers request a "closing cost credit" from the Seller.  This is a negotiated item, but is a consideration if you are concerned about coming up with a downpayment.

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