Common Closing Costs for Buyers

The Weidauer Group – The Leader in Real Estate

Common Closing Costs for Buyers

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:

• Down payment
• Loan origination
• Points, or loan discount fees, which you pay to receive a lower interest rate
• Home inspection
• Appraisal
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording
• Title insurance policy premiums
• Land survey
• Notary fees
• Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

•
• Notary fees
• Prorations for your share of costs, such as utility bills and property taxes

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.


Darin Weidauer
Weidauer Group – The Leader in Real Estate
Realtor – Los Angeles – Las Vegas
CA DRE License #01870184
424-400-4056 or 310-896-5769
NV DRE License #S.0070208
702-582-7084 or 424-400-4056
darinweidauer@weidauergroup.com
http://www.weidauergroupo.com
http://www.facebook.com/weidauergroup
http://www.twitter.com/weidauergroup
http://www.youtube.com/weidauergroup
http://www.weidauergroup-theleaderinrealestate.blogspot.com/


Los Angeles, Beverly Hills, West Los Angeles, West Hollywood, Brentwood, Century City, Venice, Henderson, Hermosa Beach, Manhattan Beach, South Bay, Bel Air, Santa Monica, Culver City, Mar Vista, Rancho Palos Verdes, Pacific Palisades, Commerce, Marina del Rey, Playa del Rey, Playa Vista, Cheviot Hills, Malibu, Hawthorne, Redondo Beach, Torrance, Las Vegas, Long Beach, Westchester, Pasadena, El Segundo, Burbank, Studio City, Universal City, Sherman Oaks, Glendale, Agoura, Agoura Hills, San Gabriel, San Marino, Santa Clarita, Sierra Madre, Calabasas, Bell Canyon, Chatsworth, Newbury Park, North Las Vegas, Moorpark, Oak Park, Simi Valley, Wood Ranch, North Ranch, Lake Sherwood, Camarillio, Conejo Valley, Woodland Hills, Hidden Hills, Bradbury, Inglewood, Glendora, Rolling Hills, La Canada Flintridge, Encino, Tarzana, Reseda, West Lake Village, San Fernando Valley, Norwalk, Newport Beach, Seal Beach, Downey, Norwalk, South Gate, Bell, Bellflower, Paramount, La Mirada, La Habra, Whittier, Costa Mesa, Irvine, Cerritos, Bell Gardens, Lynwood, Los Angeles County, Ventura County, Upland, Westminister, Los Angeles County, Orange County, Clark County