Closing costs may be a term you keep hearing but are not sure what they are. Closing costs are the various fees and expenses that come up at the end of the home-buying process when you're finalizing the purchase of a property. These costs are separate from the actual price of the home and are typically paid at the "closing" or settlement.

Typical closing costs are 3-5% of the loan OR 1-3% of the purchase price. These are costs you have to have saved up for. These costs are in addition to your down payment.

Here's a breakdown of what closing costs may include:

    • Lender Fees: Charges from your mortgage lender for processing and approving your loan.
    • Title and Escrow Fees: Costs associated with ensuring a clear title for the property and handling the transfer of funds.
    • Appraisal Fees: The cost of having a professional appraiser assess the value of the property.
    • Home Inspection Fees: Charges for a home inspection to identify any potential issues with the property.
    • Property Taxes: Prepayment of property taxes for the time you'll be living in the home.
    • Homeowners Insurance: An upfront payment for your homeowners' insurance policy.
    • Recording Fees: Fees for recording the sale with the local government.
    • Attorney Fees: Fees for coordinating the closing paperwork and process.

Please be aware of these costs and budget accordingly. While some of these fees may be negotiable, they are a standard part of the home-buying process. It's advisable to get an estimate of your closing costs early in the home-buying process so that you can plan your finances accordingly and avoid any surprises at the closing table.

Estimated Buyer Expenses for Closing*

Listed are some ESTIMATED typical closing costs associated with buying property. There may be more than are listed here depending on your situation and the lender. Your lender will be able to give you the most accurate estimate for closing costs, so don't be afraid to ask them for guidance.

(This is just a general estimate; these numbers may be different for your specific transaction.)

*A Loan Estimate of Closing Costs is provided by the mortgage lender and will be more detailed and inclusive of costs.  These costs might include but are not limited to a commitment fee, underwriting fee, tax service fee, flood certification fee, courier fee, etc.


Also here are specific inspection cost estimates I am currently seeing for buyers:

General: $500 -$800

Termite: $75 -$150

Radon: $150-$200

Water: $225 - $350 - bacteria, nitrates, lead

Mechanical Well: $150 - $250 

Septic: $300- $500

Dock: $350 - $550

Structural Engineer Report - $550+

Survey - $750+ - larger lots cost more

Reinspections - about 1/2 - 2/3 the cost of the original inspection. - Use these to confirm repairs are done correctly if needed.

Closing costs are additional expenses during the final stage of purchasing a property. These costs, separate from the home's purchase price, include fees for loan processing, title services, appraisals, inspections, property taxes, homeowners insurance, and other miscellaneous charges. 

Contact me if you have additional questions about closing costs or other parts of the buying process. 


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