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