The Scoop on Closing Costs

By
Real Estate Agent with Diamond Realty Group

 

Are you a buyer preparing to close on a house? Now is a good time to refresh yourself on the most common closing costs.
 

There are more expenses to buying a house than just the monthly mortgage payment. More than likely you'll need to come up with some cold, hard cash in order to finalize the deal.

Here's some common closing costs to consider:

 

  • Down Payment: Due to today's economic climate most buyers will need to put down at least 20 percent. This makes good financial sense. If you can't afford to put 20 percent down then you probably can't afford to buy this particular house.

     

  • Loan Origination: This is what the lender charges you to underwrite the loan, meaning what they charge for their time and all the paperwork they need to do.

     

  • Points: You'll often see that different lenders have different "rates" and different "points" they charge. Buy paying points you can receive a lower interest rate, but this means more cash at closing.

     

  • Credit Score: You can access your credit report for free at annualcreditreport.com, however, in order to see your credit "score" -- the magic number that lenders use to determine your interest rate -- you'll need to pay a small fee.

     

  • Home Inspection: You want to be sure, no matter if the house is new or old, that you get a home inspection by a qualified inspector. You may love the house and the price, but if you find out that a big ticket item needs replaced you will be able to renegotiate the price or decide to change your tune on buying the home. A typical inspection will run you from around $300 to $500.

     

  • Private Mortgage Insurance (PMI): This is what a lender charges if you are putting less than 20 percent down on the cost of the home. It usually runs about .5 to 1 percent of the total cost of the loan and is simply a safeguard to protect the lender should you default.

     

  • Other Small Fees: Insurance escrow, property tax escrow, notary feeds, land surveys, deed recording, etc. Be sure to ask your real estate agent which will apply to your contract and what the expected costs will be.

    Congratulations on the decision to buy. Owning a home can be a wonderfully fulfilling experience. Just be sure you're ready for the closing costs coming your way!

  •  

     

    Addison $150-250K        Addison $250-500K        Addison $500K+ 

    Allen $150K-250K        Allen $250K-500K        Allen $500K-1000K        Allen $1000K+   

    Anna $150-250K        Anna $250-500K        Anna $500K+

    Aubrey $150-250K        Aubrey $250-500K        Aubrey $500K+

    Carrollton $150-250K        Carrollton $250-500K        Carrollton $500K+

    Celina $150-250K        Celina $250-500K          Celina $500K+

    Cross Roads $150-250K        Cross Roads $250-500K        Cross Roads $500K+

    Dallas $150-250K        Dallas $250-500K        Dallas $500K-$1000K        Dallas $1000K+

    Fairview $150-250K        Fairview $250-500K         Fairview $500K-$1000K         Fairview $1000K+

    Fate $150-250K         Fate $250K+

    Frisco $150-250K         Frisco $250-500K         Frisco $500K-$1000K        Frisco $1000K+

    Highland Park $250-500K         Highland Park $500K-$1000K         Highland Park $1000K+

    Lakewood Village $150-250K         Lakewood Village $250-500K            Lakewood Village $500K+

    Lavon $150-250K         Lavon $250-500K         Lavon $500K+  

    Lewisville $150-250K         Lewisville $250-500K         Lewisville $500K-$1000K         Lewisville $1000K+

    Lucas $150-250K         Lucas $250-500K         Lucas $500-1000K         Lucas $1000K+

    Little Elm $150-250K         Little Elm $250-500K         Little Elm $500K+

    McKinney $150-250K        McKinney $250-500K         McKinney $500K-$1000K         McKinney $1000K+

    Melissa $150-250K         Melissa $250-500K         Melissa $500K+

    Oak Point $150-250K         Oak Point $250-500K         Oak Point $500K+

    Parker $250-500K         Parker $500K-$1000K         Parker $1000K+

    Plano $150-250K         Plano $250-500K         Plano $500K-$1000K         Plano $1000K+

    Princeton $150-250K         Princeton $250K+

    Prosper $150-250K         Prosper $250-500K         Prosper $500K-$1000K         Prosper $1000K+

    Providence Village $150K+

    Richardson $150-250K         Richardson $250-500K         Richardson $500K-1000K         Richardson $1000K+

    Rockwall $150-250K         Rockwall $250-500K        Rockwall $500K+

    Rowlett $150-250K         Rowlett $250-500K         Rowlett $500K+

    Royse City $150-250K        Royse City $250K+

    Sachse $150-250K         Sachse $250-500K         Sachse $500K+

    Savannah $150-250K         Savannah $250K+

    University Park $250-500K         University Park $500K-$1000K         University Park $1000K+

    Wylie $150-250K         Wylie $250-500K         Wylie $500K+

     

    Dorian Moffat - Broker Associate / Realtor

    Your Best Move !!!

    Diamond Realty Group

    Direct: 469-231-9308

    Office: 972-312-0332 

    Fax: 972-499-3487

    www.ecollincountyhomes.com

    www.allentxrealtor.com

    www.facebook.com/collincountyrealestate

    (Ask Me About My Special Programs: Sell @ A Discount When You Buy!!! - VIP Buyers - HOT, NEW Listings - NO Money Down - Don't Even Think About Visiting A Builder Without Me!!!  I Have Access To Discounts, Incentives & Promotions To Save You $$$!!!)

     

    P.S. While my business is good and growing steadily, it is important for you to know that I am never too busy to help those you refer to me: your family, friends, neighbors and coworkers.

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    Richardson Garland Wylie Sachse Rowlett Lavon Royse City Rockwall Fate Plano Murphy Allen Lucas Lovejoy Parker Fairview McKinney Princeton Melissa Anna Prosper Celina Frisco Little Elm Aubrey Crossroads Providence Village Savannah Carrollton Dallas Highland Park University Park Cul De Sac North ISD School Middle High Elementary Golf Lot Sale Zero Down First Time Buyer VA FHA USDA Foreclosure Distress REO Short Sale Relo Collin County Rockwall County Dallas County Denton County

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    Rainmaker
    645,245
    Team Honeycutt
    Allen Tate - Concord, NC

    Thanks for giving such good explanations of the terms in your post. This will prove helpful in explaining the terms to clients or customers.

    Betty

    Jun 05, 2012 02:26 PM #1
    Rainmaker
    634,742
    Mark Loewenberg
    Keller Williams of the Palm Beaches - Palm Beach Gardens, FL
    PA 561-214-0370

    very detailed information and you did cover the major parts of what is needed by the buyer at closing!

    Jun 05, 2012 07:05 PM #2
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    Rainer
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    Dorian Moffat

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