Closing Costs Basics
When buying or selling a home there are fees or “closing costs” that are associated with the mortgage transaction. There are many variations to these fees by location (primarily state and county), the lender, the type of loan, and your specific transaction.
Still, there are some basics that tend to be standard:
- Down Payment: This is what it sounds like – the money you will put toward the purchase of the home apart from any mortgage. The size of the down payment can influence the amount of risk the mortgage lender is willing to take.
- Title search fees: which pay for a background check on the title to make sure there are not any unpaid mortgages or tax liens on the property.
- Title insurance: which help protects the lender and/or borrower depending on the coverage purchased in case the title is not “clean.”
- Attorney’s fees: for closing the loan transaction.
- Appraisal Fees: An appraisal of the property to be purchased is requested to help determine its value.
- Lender fees: include underwriting fees which cover the cost of evaluating your mortgage application.
- Recording fees: to the county, so the transaction can be entered into records.
- Stamp tax: based on state and county requirements.
- Credit report fee: Cost for the lender to pull your credit report.
- Origination fee: Based on particular companies that you pick to process your mortgage.
You also should know about some costs that are involved in the loan transaction that are not considered closing costs, as they are paid prior to closing and are subjective. These fees again are generally based on state and county requirements:
- Pest inspection fees: Subjective based on state and county requirements.
- Survey fee: Verification of property lines and other details about the property.
- Inspection fees: For buyers who want a certified property inspector to assess the home's condition.
- Escrow deposits: For home owner’s insurance and property taxes.
- Home Owner’s association fees: Details about fees associated with a property's homeowner's association.
The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity' Program of the Regional Multiple Listing Service of Miami Dade, Broward, Palm Beach, Collier and Lee Counties. Not all listings found on this site are necessarily listed through Subdivisions.com. Real estate listings held by brokerage firms other than Subdivisions.com are marked with the Broker Reciprocity' logo or the Broker Reciprocity' thumbnail logo (little black house) and detailed information about them includes the name of the listing brokers.