• Budgeting

  • Closing Costs

  • Home Buyers

Common Closing Costs

September 26, 2014

Here are a list of the top closing costs you can expect as part of the buying process:

Adjustments –
Any rents, mortgage interest, property taxes and unmetered public or private utility charges shall be apportioned and allowed to the closing day. The closing day itself is apportioned to the buyer.

Survey/Title Insurance –
A survey is required by all lenders to ensure that the house they are mortgaging is fully within its lot lines. The cost of a new survey could be significant (about $800-$2000). To eliminate this unwanted expense make sure the seller has an acceptable and readable copy of an existing survey. It is also recommended that Title Insurance be purchase to protect the buyer.

Legal Fees –
It is important to have an attorney look after all the details necessary for closing. When deciding on one, make sure to ask exactly what the fee is and if it includes title insurance,
disbursements, and taxes.

Mortgage fees –
Depending on your lender of choice, you might be charged appraisal and loan application fees. In the event that mortgage insurance is necessary please refer to the table on the next page in order to determine the appropriate fee.

Land Transfer Tax –
Unlike property taxes, this tax is a one time cost paid by the purchaser on closing. It could be a significant amount. Use the table on the next page to determine the
estimated tax.

Miscellaneous –
Other costs you should consider are moving costs and one time installation fees for various service companies such as cable, phone etc. etc. etc.

It is important to make sure you’ve factored these into your budget and have enough money set aside to cover everything!