Courthouse Realty - Mortgage Information

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Closing Costs Can Be Up to 6% of Your Loan

So far, we’ve gone over how to calculate how much house you can afford to buy. We've looked at the basic monthly expenses: mortgage principal and interest, real estate taxes, homeowner's insurance, plus, in many cases, private mortgage insurance.

But before you finish buying the house, there are other typical closing costs. You need to have enough cash to cover these basic costs plus your down payment. Lenders estimate 3 percent to 6 percent of the loan amount in closing costs. On a $100,000 mortgage that would be $3,000 to $6,000.

Lots of Little (and Big) Fees:
Closing costs could include:

Loan application fees and credit report

Title search and insurance fees

Lender's attorney fees

Property appraisal

Inspections

Survey

Recording fees

Transfer taxes

Buyer's attorney

Documentary stamps on new note

Origination fees on mortgage

Condominium application fee

Escrow account balances/prepaids(for taxes, insurance)

Real estate closing practices vary widely from state to state and even county to county. Where you live will determine exactly what you will have to pay. Even if you are not required to escrow money for taxes, you may want to set aside this amount to assure that you will be able to pay those tax bills when they fall due. You can get a good idea of what applies where you are buying by checking with a few real estate agents and lenders or title agents.