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