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:

“Out of Pocket” Expenses:

  • Down payment
  • Appraisal
  • Courier fees (Fed Ex)
  • Credit Report
  • Digital Imaging/Archiving Fee
  • Documentary stamps on the note: $.35 per $100.00 of note amount
  • E-recording fee ($4.00 per instrument to be recorded)
  • Broker Administrative Commission ($250.00)
  • Inspections fees and other Lender’s fees
  • Intangible tax on the mortgage $.20 per $100.00 of mortgage amount
  • Mortgage Points
  • Title Insurance:
    • Lender’s Policy
    • Endorsements
    • Owner’s Policy
  • Recording Fees ($10.00 first page, $8.50 each additional page)
  • Settlement Fee
  • Survey/ Termite Report/ Roof Report (if required)

“Prepaids”:

  • 2 – 13 months property taxes (changes depending on time of the year closing takes place)
  • 14 months hazard insurance
  • 14 months flood insurance (if required)
  • 14 months windstorm insurance (if required)
  • P.M.I Premium (If loan to value ratio is higher than 80% )
  • Prepaid Interest (from closing date to the end of the month)
  • Prorations for your share of costs, such as utility bills.