Closing costs are those costs that include the loan origination fee, title costs & fees, discount points, appraisal costs, and any other charges associated with the legal transfer of property. Typically, these costs will range between 2% – 3% of the mortgage amount depending upon the type of loan desired. HOWEVER, costs can be lowered to $ ZERO on certain loan types and loan terms.
Each county may have slightly different customs, fees or regulations but, in general you can expect ‘Closing Costs’ to include some, if not most, of the following:
– Escrow fees (or attorney fees), both yours and the lender’s, if applicable)
– Property taxes (prorated to match your Closing Date for accuracy)
– Interest (paid from date of Closing to 30 days before first monthly payment)
– Loan Origination fee (covers lenders administrative cost)
- Recording fees
- Survey fee
- First premium of mortgage Insurance (if applicable)
– Title Insurance (yours and/or lender’s, as applicable)
– Loan discount points (if any)
– First payment held in escrow account for future real estate taxes and insurance
- Paid receipt for homeowner’s insurance policy (and fire, flood, etc. insurance, if applicable)
– Any documentation preparation fees