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.
