Many of my clients who are buying a Charlottesville home for the first time email me and ask "What are my closing costs?"
For many purchasers closing costs is a catch all phrase that encompases a whole laundry list of items. They know that it is something that they will have to pay at closing, but have no idea what it will include. Often it may be more advantageous to ask the seller to pay all or a portion of the purchaser's closing costs rather than ask for a price reduction. The seller's agreeing to pay closing costs may determine whether the buyer can even obtain financing.
The following items are included in Purchaser's Estimated Closing Costs:
- Credit report - $60
- Appraisal - $300 to $500
- Survey - $300 and up (sometimes optional)
- Homeowners Insurance
- Mortgage Title Insurance - $3.25/$1,000 of loan amount
- Owner title Insurance - $3.00 to $3.90/$1,000 of loan amount (Discount if both Mortgage and Title Insurance is purchased)
- Attorney's Fee - $500+/- or Settlement Company $325+
- Loan Origination - 1% of loan
- Discount points - 0% to 4% of loan amount, if applicable
- Tax escrow - 2-3 months
- Insurance escrow - 2-3 months
- PMI escrow
- pre-paid interest - per diem to the end of the month
- Recording Deed -
a. State & Local - $3.33/$1,000 of sales price
b. Recording fee - $39 - Recording Deed of Trust -
a. State & Local - $3.33/$1,000 of loan amount
b. Recording fee - $46 for over 10 pages - Document prep/additional lender fees
- Other - such as payment to seller for propane remaining in the tank
Your lender is required to provide you with a Good Faith Estimate within 3 days of making loan application which outlines your settlement fees. However, it is good to have an idea of how much your closing costs could be before presenting an offer to buy a Charlottesville home. Your real estate agent and your lender will be able to help you with this.
