| Down Payment | | | | A municipal tax imposed within the corporate |
| | | | limits of some cities. |
| Most lenders require at least 10% of the | | | | |
| purchase price, though new programs are | | | | The cost is $3.30 per $1,000 of selling |
| available for 3%-5% down. 100% financing can | | | | price, usually negotiable between buyer and |
| be found, but you credit must be excellent | | | | seller, but custom varies between countries. |
| and PMI insurance will be required. | | | | |
| | | | The VA does not allow the veteran buyer to |
| Loan Origination Fee | | | | pay any portion of this cost. |
| | | | |
| A lender's fee for establishing a new loan. | | | | Miscellaneous Costs & Fees |
| Government regulations allow only 1% | | | | |
| origination fee on FHA or VA loans. | | | | An estimate of $150 should be adequate to |
| Conventional loan fees can vary from -1 to 3+ | | | | cover minor items as notary, recording |
| points, plus other costs. A point is 1% of | | | | documents, endorsements, etc. as well as |
| the loan. | | | | allowing for variations from these other |
| | | | estimates. |
| Appraisal Fee | | | | |
| | | | Hazard Insurance Reserve |
| Fee paid to obtain an estimate of market | | | | |
| value upon which the lender will base the | | | | Two month's premium is collected for the |
| loan amount. The cost is about $350-$1000. | | | | impound account if required. |
| Non refundable. | | | | |
| | | | The buyer will need to either provide or pay |
| Credit Report | | | | for coverage for the 1st year. |
| | | | |
| An evaluation of the buyer's credit habits | | | | Prepaid Interest |
| made by a credit bureau for the lender. | | | | |
| | | | Interest must be paid from COE (close of |
| The cost is $20-$60. Non refundable. | | | | escrow) to 30 days prior to the first regular |
| | | | mortgage payment. An estimate of one months |
| Tax Service Fee | | | | interest should suffice. |
| | | | |
| A charge of approximately $75 is made by a | | | | Mortgage Insurance |
| tax service company to verify to the lender | | | | |
| that the taxes have actually been paid when | | | | Mortgage Insurance is required on all |
| due or are due to be paid by borrower or | | | | conventional loans greater than 80%. |
| mortgage company if impounding. | | | | |
| | | | The cost may range from 1/2% to 1% per year |
| Assumption Fee | | | | and 14 months premium is |
| | | | |
| Fee of approximately $250 up to 1% of the | | | | collected in advance. This is coverage for |
| loan balance is charged by the existing | | | | the lender in case of default. |
| lender for the privilege of assuming the | | | | |
| existing loan. | | | | Tax Impounds |
| | | | |
| Pest Inspection Fee | | | | If the new loan is going to have an impound |
| | | | account, the lender will require from 2-10 |
| Fees of $75 - $175 is charged by termite | | | | months taxes to be deposited, depending on |
| companies for inspecting property for damage | | | | the time of year. Note: if taxes are |
| done by wood destroying organisms and dryrot. | | | | prorated, buyer's total charge for taxes |
| | | | should equal about six month's taxes. |
| It is customary for the seller to pay for | | | | |
| Section 1 and the buyer for Section 2 work. | | | | Escrow Fee |
| | | | |
| Other Inspection Fees | | | | These fees range from $750-$2500, depending |
| | | | on the sales price. In some counties its |
| Other inspections the buyer may choose to | | | | customarily paid by the seller, in other |
| have done are: property inspections that | | | | counties the buyer pays, while in others it |
| usually cover foundation, electrical, | | | | may be customarily split. Remember though, |
| plumbing and overall construction at a cost | | | | everything is negotiable. |
| of $300-$400. Roof inspections cost $75-$125. | | | | |
| Geological reports cover subject's site in | | | | Negotiating Fees |
| relation to fault and slide zones, costing | | | | |
| about $100. | | | | The above fees are typical costs when buying |
| | | | real estate in California counties. |
| Septic $200-$400. Radon $50-$100. Asbestos | | | | |
| $75-$125. | | | | Most of the fees are considered buyer's |
| | | | non-recurring closing costs. |
| Alta Title Insurance | | | | |
| | | | Some of the fees are fixed while others are |
| This is an extended policy with more specific | | | | negotiable. |
| coverage than the CLTA standard policy. | | | | |
| | | | Your real estate agent can negotiate with the |
| It covers unrecorded liens, is based on loan | | | | sellers to pay some or most of these costs, |
| amount only and is required by almost all | | | | saving you thousands of dollars in closing |
| lenders. The cost is obtained from a rate | | | | costs. |
| chart and is based on the loan amount. | | | | |
| | | | Ask your real estate agent and loan agent to |
| City Transfer Tax | | | | provide estimated closing costs of buying a |
| | | | home before looking at homes. |