Joan Congilose's Real Estate Blog

Most first time home buyers shopping for a home are aware of the costs associated with purchasing a home and moving, but closing costs is an expense that is often overlooked.  The amount of the closing costs you will have to pay will depend on where you live, the type of home you buy, the type of mortgage you are going to carry, and the purchase price of your home  In most cases they generally range from 4% to 6%  of the price of the home. The majority of these expenses are payable at closing. So before planning. your home purchase budget, here are some hidden expenses that you may want to include.

Types of Closing Costs                                                                                                                      

Recurring costs include things like fire and flood insurance, property taxes, and mortgage insurance; these are expenses that will have to become part of your monthly budget and in most cases are often anticipated by new home buyers.

Non-recurring costs are one-time costs that are associated with the closing of a home ,and in most cases make up the bulk of extra expenses which may include:

     Estimated Nonrecurring Costs:

• Home Inspection  $400- $750+
• Legal Fees $700-$1,000+
• Title Fees Approximately  $4.25 per $1,000 of the purchase price
• Wire Fees $25+
• Courier Fees $50+
• Recording Fees (Mortgage and Deed) $400
• Survey $500-$750+

        Bank Fees ( Can Vary Among Lenders):

• Appraisal $350-$450
• Mortgage Application $$300-$650
• Commitment $350
• Credit Report $50
• Discount Points One point is 1 percent of the loan amount.

Depending  on your particular circumstances, the actually closing fees may include just a few of these costs, or others that are not listed here. To get a clearer picture of the costs before you select a home it's important to get a detailed list of anticipated closing costs from your Attorney and your Lender.