Everything about real estate business


Real estate fees

Down  PaymentA municipal tax imposed within the corporate
limits  of  some  cities.
Most lenders require at least 10% of the
purchase price, though new programs areThe cost is $3.30 per $1,000 of selling
available for 3%-5% down. 100% financing canprice, usually negotiable between buyer and
be found, but you credit must be excellentseller,  but custom varies between countries.
and  PMI  insurance  will  be  required.
The VA does not allow the veteran buyer to
Loan  Origination  Feepay  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% ofdocuments, 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 theTwo 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  Reportfor  coverage  for  the  1st  year.
An evaluation of the buyer's credit habitsPrepaid  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  Feeinterest  should  suffice.
A charge of approximately $75 is made by aMortgage  Insurance
tax service company to verify to the lender
that the taxes have actually been paid whenMortgage Insurance is required on all
due or are due to be paid by borrower orconventional  loans  greater  than  80%.
mortgage  company  if  impounding.
The cost may range from 1/2% to 1% per year
Assumption  Feeand  14  months  premium  is
Fee of approximately $250 up to 1% of thecollected in advance. This is coverage for
loan balance is charged by the existingthe  lender  in  case  of  default.
lender for the privilege of assuming the
existing  loan.Tax  Impounds
Pest  Inspection  FeeIf the new loan is going to have an impound
account, the lender will require from 2-10
Fees of $75 - $175 is charged by termitemonths taxes to be deposited, depending on
companies for inspecting property for damagethe 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  FeesThese fees range from $750-$2500, depending
on the sales price. In some counties its
Other inspections the buyer may choose tocustomarily paid by the seller, in other
have done are: property inspections thatcounties the buyer pays, while in others it
usually cover foundation, electrical,may be customarily split. Remember though,
plumbing and overall construction at a costeverything  is  negotiable.
of $300-$400. Roof inspections cost $75-$125.
Geological reports cover subject's site inNegotiating  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 specificnegotiable.
coverage  than  the  CLTA  standard  policy.
Your real estate agent can negotiate with the
It covers unrecorded liens, is based on loansellers to pay some or most of these costs,
amount only and is required by almost allsaving you thousands of dollars in closing
lenders. The cost is obtained from a ratecosts.
chart  and  is  based  on  the  loan  amount.
Ask your real estate agent and loan agent to
City  Transfer  Taxprovide estimated closing costs of buying a
home before looking at homes.



1 A B C D 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105