Closing Costs-What They Are & How Much You Should Expect to Pay

By
Real Estate Agent with Fonville Morisey Realty

Closing Costs-What They Are & How Much You Should Expect to Pay

(These closing costs are for Cary NC real estate.)

Closing costs are the number one question that arises during my buyer's consultation.  What are closing costs and how much should I expect to pay? The folllowing should do a fairly good job answering those questions.  Remembering that the numbers that are given are approximate and are subject to change.

 

Loan Origination Fee - 1% of the loan

This fee is charged for originating the loan. It is expressed as a point or percentage of the loan.

Discount Points - Each point = 1% of the loan

A one-time charge used to adjust the price on the loan to prevailing market conditions.

Appraisal Fee - $325-425

A fee for a written statement of property value made by an approved appraiser.

Interim Interest - $20-75

Interest collect on the loan from the date of closing through the last day of the month (except when the closing takes place on the 1st day of the month)

Mortgage Insurance - Premiums vary based on coverage requirements

Generally required on mortgage with less than a 20% down payment. Mortgage insurance protects the lender from loss due to payment default.

Homeowner's Insurance - First year's premium is paid at closing

Lenders require a homeowner's insurance policy covering at least the amount of the mortgage.  If the property is in a flood zone, flood insurance in mandatory.

Escrow Deposits - 2 months hazard insurance, taxes based on due date

Funds held in an account by the lender to assure future payment for such recurring items as real estate taxes, hazard insurance and mortgage insurance.

Attorney Fee - $450-500

the attorney is responsible for the title search, obtainin title insurance, handling and computing the closing statement, and recording the deed.

Title Insurance - $2 per $1000 of coverage

Protects against loss due to problems of defects in the title to a specifically described parcel of real property, which cannot be found or aren't found on public record.  Title insurance will reveal any outstanding liens against the property and identify the legal owner of the property. A one-time fee payable at closing.

Recording Fees - Average $80

Fees paid at the courthouse for recording the deed, deed of trust, and any other recording documents.

Survey - $250-350

The measurement of the boundaries of a parcel of land, including the exact location of the house, easements, buffers, encroachments, and setback lines within the boundaries of the property.

Committment Fee - $350-595

Paid to the lender/investor at closing to cover the cost of underwriting the loan and issuing loan commitment.

Tax Service Fee - $70

One time fee paid to a company tha ensures the payment of real estate taxes from the lender's escrow account.

Terminte Inspection - $75-125

A report from a NC licensed pest control operator identifying any wood-destroying insects and sny resulting damage.

Home Inspection - $350-550

Performed by a licensed home inspector to determine the structural soundness and condition of the home

 

Closing Costs-What They Are & How Much You Should Expect to Pay and more information about the home buying process can be found on Cary NC-Homes for Sale.

 

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Show All Comments
Rainer
52,047
Edward Bachman
EXIT REALTY SOLUTIONS - Kingwood, TX
Your Kingwood TX Realtor

Great post.  I find that most buyers are amazed and shocked at what closing costs are.

Oct 05, 2009 08:33 PM #1
Ambassador
1,030,230
Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (949)510-2395

This is a must-read for all home buyers. They are always over estimating or underestimating and both can be a problem.

Oct 05, 2009 08:49 PM #2
Rainmaker
160,565
SarahGray Lamm
Allen Tate Realtors Chapel Hill, NC 919-819-8199 - Chapel Hill, NC
Realtor - 100K Hours of NC Real Estate Experience

Great info for your clients! I would send this link to your new clients so they will have heard the terms before you sit down for the first time. You've given me an idea! ;-)

Oct 06, 2009 06:48 AM #3
Rainmaker
956,578
Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
CNE - ASP - SRES .... Uxbridge Ontario Real Estate

Linda - this is a greatlist with some very important and pertinent information for your clients.

Oct 06, 2009 12:09 PM #4
Ambassador
1,888,154
Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
Broker/Owner, Integrity Real Estate Services -IDAB

Good info for anyone wanting to buy to sell!

Oct 06, 2009 08:04 PM #5
Anonymous
Anonymous
Buyer

I have a question about Atty fee?   My Atty charged me $555.00  plus I was charged $170 title search and then $65 update title and record, not to include the govt rcd fee.  Does this sound right?

 

Oct 14, 2009 06:13 PM #6
Rainmaker
148,701
Linda Lohman
Fonville Morisey Realty - Cary, NC
Former Teacher/Broker

Buyer,

Depends, a frequent answer in real estate.  Different markets charge different amounts for attorney fees.  When we bought a cabin in the NC mountains we paid $650 for an attorney in a small town.  We chalked it up to no competition.

The separate charge for the title search is uncommon in our market in Cary NC.  I suppose may be practiced elsewhere.  Here it is part of the attorney fee.

 The recording fee is paid at the court house to record the title.  Those fees are expected to increase as states are looking for ways to increase revenues.  So right now $65 is a bargain.

The bottom line is that every place is a bit different and will vary a degree to two.  You numbers do not sound too off base.  I hope I was able to answer your question.  Feel free to subscribe to my blog for more information. : )

Oct 15, 2009 04:56 PM #7
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Rainmaker
148,701

Linda Lohman

Former Teacher/Broker
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