Common Closing Costs For Buyers

Dated: 03/05/2019

Views: 19

COMMON CLOSING COSTS FOR BUYERS

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:

• Down payment 

• Loan origination 

• Points, or loan discount fees, which you pay to receive a lower interest rate

• Home inspection 

• Appraisal 

• Credit report 

• Private mortgage insurance premium

• Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage

• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.

• Deed recording 

• Title insurance policy premiums

• Land survey

• Notary fees

• Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6 th of the month. You would owe the gas company for only the days from the 6 th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

The data relating to real estate for sale on this site comes in part from the Broker Reciprocity Program of Georgia MLS. Real estate listings held by brokerage firms other than Results Realty Services are marked with the Broker Reciprocity logo and detailed information about them includes the name of the listing brokers. 


Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. 

Copyright 2019 Georgia MLS. All rights reserved. 

Latest Blog Posts

10 Questions To Ask Home Inspectors

10 QUESTIONS TO ASK HOME INSPECTORSBefore you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with

Read More

10 Questions To Ask The Condo Board

10 QUESTIONS TO ASK THE CONDO BOARDBefore you buy, contact the condo board with the following questions. In the process, you’ll learn how responsive — and organized — its members

Read More

10 Questions to Ask Your Lender

10 QUESTIONS TO ASK YOUR LENDER1. What are the most popular mortgages you offer? Why are they so popular?2. Which type of mortgage plan do you think would be best for me? Why?3. Are your rates,,

Read More

10 Ways to Prepare for Home Ownership

10 WAYS TO PREPARE FOR HOME OWNERSHIP1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income. 2. Develop your home wish

Read More