What are closing costs?
Closing costs are the costs and fees that are paid by the buyer and the seller when you close on a home. They include such things as taxes, insurance, pre-paid interest, land survey, discount points, real estate commissions, owners title policy, attorney fees, processing fees, transaction fees, etc. These costs are calculated and then put onto a document known as the HUD1 Closing Statement. The HUD1 separates the sellers fees and the buyers fees into two different columns and then tallies them up at the bottom. Usually the seller ends up getting money back at the closing and the buyer ends up bringing a cashiers check to cover his portion of the closing costs.
Typical Buyer Closing Costs: Loan origination fee, loan application fee, down payment (usually varies from 0-20%), PMI or MIP, survey, appraisal, termite inspection, home inspection, property taxes, insurance, a portion of the attorney fees, underwriting fees, flood certification, document preparation fees, mortgage broker fee, credit report, insurance and tax impounds, closing or settlement fee, recording fee, notary fee, and sometimes a few others.
Typical Seller Closing Costs: Realtor commission fee, title policy, property taxes through closing, termite treatment (if needed), repairs required by lender, funding fees, existing lien payoff, a portion of attorney fees, closing/settlement fees, document prep fees, notary fees, currier fees, recording fees, transfer fees, transaction fees, and sometimes a few others. Typically the seller can expect between 7%-10% of the sales price as his closing costs, depending on what time of year (taxes), the realtor commission fees and the extent of any repairs or seller contribution to the buyer's closing costs.
* For an estimate of what your closing costs may be, send us an email to Dave@SanJacRealEstate.com or call us at 713-894-9436
HUD-1 Settlement Statement
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The information contained on this page and website was written and produced by Dave Turnquist and is the sole property of San Jac Real Estate. No unauthorized reproduction or use of this information is permitted without the expressed written consent of Dave Turnquist, Broker/Owner of San Jac Real Estate