What You Can Expect to Pay For When Buying Real Estate

What You Can Expect to Pay For When Buying Real Estate

• Title Insurance Premiums for a title policy on your property
• Escrow Fee - is for the escrow company to process all of the property documents
• Document Preparation Fee Charged by the Lender
• Notary Fees - a fee is charged to notarized documents that will be recorded at the county recorder's office.
• Recording Charges for all documents in the Buyer's name
• Interest on new loan from date of funding to 30 days prior to first payment
• All new loan charges - this could include a fee for credit reports, applications, etc.
• Tax Proration - a prorated amount from the date of ownership.
• Homeowner's Association Transfer Fee (if a condo, town home or planned unit development)
• Home Warranty (most sellers in southern California are asked to pay for this item in a purchase contract)
• Any City Transfer Tax
• Fire Insurance Premium for the 1st year. (Usually included in the HOA dues.)

Closing Costs Average About 2-3% of the Purchase Price
All of your closing costs will be spelled out in your final closing statement provided by the escrow company. is why it is important to meet with a lender in the beginning of your real estate adventure and look at the costs involved so you can make wise decisions.  N

IMPORTANT: To make sure you don't have any surprises on closing day, make sure your lender gives you an accurate Good Faith Estimate for the leder charges.  It is required for lenders to provide this to you, so you shouldn't even have to ask. 

As soon as you open escrow, you can also request an estimated HUD from escrow.  This form will show ALL estimated closing costs.  Go into the transaction with confidence when you request these documents early on.