Closing Costs in Cary NC What are Closing Costs in Cary NC? This is a question that I'm asked quite often so it inspired me to create this post.
From: David Linda, Can you tell me what closing costs I will encounter during closing? I know every state is different and I'm assuming they are different in NC than VA. David What are Closing Costs in Cary NC and how much should I expect to pay? The following should do a fairly good job answering that questions. Remembering 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 - $500-600 the attorney is responsible for the title search, obtaining 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. Commitment 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 they ensures the payment of real estate taxes from the lender's escrow account. Termite Inspection - $75-125 A report from a NC licensed pest control operator identifying any wood-destroying insects and any resulting damage. Home Inspection - $350-550 Performed by a licensed home inspector to determine the structural soundness and condition of the home Remember Closing Costs are the expenses associated with buying a home and securing a loan. In some price points sellers are willing to help with these expenses. Find out what Step 1 of the Buying Process entails. Closing Costs-What They Are & How Much You Should Expect to Pay was first published on CaryRealEstateBlogger.com -a blog by Linda Lohman
Sent: Tuesday, November 23, 2010 6:50 AM
To: Lohman, Linda
Subject: RE: closing
Linda ~ Closing costs can never be explained enough to home buyers! They can really seem overwhelming and down right ridiculous if the buyer has no idea what to expect. You did a great job listing all that should be expected at closing.
Thanks Terrie,
i use this list in my buyer's presentation too.