Buyer Closing Costs
Closing costs vary depending on contract negotiations with the Seller, the interest rates, the lender, and attorney fees. A good guesstimate for closing costs for the Buyer is about 3% of the total purchase price.
What is typically included in Closing Costs?
Pre-Paid Fees include the first year's homeowners insurance and the pro-rated interest on the home for the month you close. If you include your insurance and taxes in each month's house payment (also known as an escrow account) you will typically pay three months of the taxes and insurance into the escrow account at closing.
- The Appraisal - Depending on the type of property could range from $400 to $700.
- A Credit Report and credit updates typically range from $50 – $70.
- A Flood Certification (this clarifies if a property is or is not in a flood zone and is done on every property), approximately $10.
- The Fannie Mae Initiative Update, approximately $25.
- Attorney and all Title Related and Title Insurance Fees. These typically range from $1,300 to $1,600, however, can be higher or lower depending on the purchase price of the house and other factors