As you know, home purchases and home sales involve closing costs. In fact, “What are the closing costs?” is one of our most frequently asked questions. So we’ve created a video to give you a quick rundown of the specific fees you might encounter in our area. Because when we are talking about what is likely to be one of your biggest financial transactions to date, you don’t want any surprises!
This video uses an example of $500,000 purchase with 20% down
- Attorney Fees: Between $1,500 and $2,000
- Loan Application and Origination Fee: Around 1% of the loan amount
- Appraisal Fee: $400 to $600
- Home Inspection: $400 to $1,000, depending on the level of inspection
- Title Insurance: Approximately $4,000 to protect against ownership disputes
- Prepaid Costs: Include homeowners insurance, property taxes, and mortgage interest, and sometimes association fees
- Recording Fees: Paid to the county for recording the purchase
- Mansion Tax: 1% of the purchase price for homes over $1 million
Total Closing Costs: Typically between 3% and 6% of the total purchase price.
You can request an estimate of your closing costs from your lender at any time, in order to understand these costs better.
Feel free to reach out if you have any questions or need further assistance!
