A Quick Guide to Closing Costs
Lenders will order an appraisal to assess the value of a home. Appraisal fees may vary depending on the location of a property, its size, and the number of units involved. Typical fee range is $ 200 to $ 700, but may be higher. “If you’re buying, say, a $ 6 million property, you can pay the appraiser a $ 2,000 fee,” Mr. Rodriguez said.
The appraiser will evaluate, among other things, the condition of the home. “If the appetizer calls for a problem to be resolved, it is usually the responsibility of the seller,” Mr. Yecies said.
Title Search and Insurance
To ensure that there is no problem with the ownership of a home, or a penalty or judgment against it, a title search is conducted. Buyers can theoretically do this by examining public records, but most real estate and mortgage brokers recommend hiring a professional. Title companies can charge around $ 150 to $ 500 for a title search.
Nearly all lenders will require title insurance as additional protection against any potential disputes after closing – this is usually paid by the buyer in a one-time premium. Premiums can vary from a few hundred dollars to a few thousand dollars, it depends on the state where the purchase takes place and the price of the property. Owner title insurance is optional, although often recommended. In many states, you can shop for the best deals. The American Land Title Association, a trade group, has a searchable database of title insurance companies by state Website.
To confirm the boundaries of a property, a land survey is ordered. The cost also varies according to the market. According to Essen Loan, the cost of a professional survey is on average $ 400 to $ 700. “If an existing survey is 10 years old or less, the title company may allow the use of that survey,” Mr. Yecies said. “I always advise people to get a survey. What if you have a border dispute with your neighbor over the placement of the fence, or who owns a tree? “
Some states require that buyers have a real estate attorney for closed transactions.
The lawyer will usually review all necessary paperwork and documentation and advise on any issues. Legal fees will vary widely, usually depending on the location and type of property purchased. Expect to pay a flat fee or hourly rate, usually starting at around $ 150 per hour. Some law offices may offer exemptions if they are hired to represent a buyer in both the sale and purchase of a home.
A credit report will be ordered to determine your credit. Some lenders may cover this cost; Otherwise, expect to pay $ 30 to $ 50 per report. You can pay more, however, if a report contains inaccuracies that need to be corrected.