Closing Costs

There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract.

As I negotiate the sales contract for you, I will not only work to get the sales price you want, I will also work to limit the number of closing cost items for which you will be responsible.

I will negotiate for the Home Seller to pay as much of your Closing Costs as is possible within the constraints of:

• the current housing market - i.e. buyer's or seller's market
• whether a better sale price or lower closing costs are the priority

Keep in mind that you can amortize the mortgage over 30 years, adding a little to your monthly payment for a concession in price by you, but you must pay for your portion of the Closing Costs out of pocket at Closing.

Your mortgage loan officer will walk you through the Closing Costs, answering any questions you may have, explaining which costs are decreed by law to be yours and which are negotiable.

Good Faith Estimate

Buyers will receive a "Good Faith Estimate" of Closing Costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate" with you and your lender, answering questions and highlighting missing costs and estimates I believe to be low.

Standard Closing Costs

Loan-Related Costs

• Loan Origination Fee (lenders do not originate loans for free) 
• Points (optional)
• Appraisal Fee (mandatory)
• Credit Report (mandatory for most loan products) 
• Interest Payment 
• Escrow Account (speak to oyur lender about your wishes, to pay as you go within your monthly payment, or on your own at the end of the year; sometimes optional.  most opt wisely to pay as they go to preclude not being able to come with it all at the end of the year.  A lien will be placed on your home for non-payment.)

Taxes

• Property Taxes (I will tell you how much the taxes were for the prior year before you enter into a contract)
• Transfer Taxes and Recording Fees (unavoidable)

Insurance

• Homeowners Insurance (you must have your insurance company provide proof of a one-year, pre-paid policy) 
• Flood or Quake Insurance (very common, but not always required) 
• Private Mortgage Insurance (PMI) - your lender may be able to provide a loan product that avoids this entirely
• Title Insurance (must purchase this for your lender's protection, but your own homeowner's policy is optional, but recommended)

I hope this information has been helpful to you.

Dave Wildman, ABR, "The Homebuyer's Advocate"