Budget for Closing Costs

Closing costs are the fees and expenses associated with the closing transaction of the home. Closing costs for homebuyers typically ranging from 3% to 5% of the purchase price.
As a buyer, your closing costs may include, but are not limited to:
– Attorney fees – real estate closings usually involve an attorney for the buyer
– Credit report fees – to qualify for a mortgage, your lender will check your credit and may pass this expense on to you
– Loan origination fees – this is a fee your lender charges for processing your loan’s
paperwork
– Home Inspection – is a limited, non-invasive examination of the condition of a home. Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections.
– Appraisal fees – an appraisal is required to verify that the sale price of the property
is justified
– Lender’s title insurance – sellers pay the majority of title insurance costs, but the policy that protects the lender is typically the buyer’s responsibility.
– Title search fees – a background check on the title is run to search for unpaid liens
on the property
– Escrow deposits — your lender will probably require you to pre-pay a few months of taxes and insurance to form a “cushion” in your loan’s escrow account
– Recording fees — these are paid to your city or county for recording your purchase.
– Underwriting fees — these are the cost of evaluating your loan application