Buying a home is exciting, and it’s nerve racking too. You’ll hear lots of new terms and if you are like most home buyers, every time you hear a new term, you’ll be thinking, “How much is this going to cost me?”

We have a great mortgage calculator here. That will help you determine your payment amount. You might also be wondering about the upfront fees. While every transaction is unique, here are the terms and fees you can expect to hear as you move from home shopping to closing.

Customary Closing Costs for a Home Buyer

One-half of escrow fees (according to the contract)

Lender’s Extended Title Insurance Premium (ALTA)

Recording charges for all documents in buyers name (Deed of Trust, Mortgage)

Document preparation (if applicable)

Inspection feeds (according to contract): roofing, property inspection, pest, etc.

Home warranty (according to contract)

Tax and homeowner’s dues pro-rationed from the date of acquisition

Homeowners / Hazard insurance for the first year

All new loan charges (except those required by lender for seller to pay)

Interim interest on new loan prorated from date of funding to first payment date

The above items range from 1% to 3% of the sales price, usually closer to 3%.

These fees can be paid from a home buyer’s savings, they can be gifted by a loved one, they can even be paid for by the seller (usually in consideration for a higher home price). These fees are in addition to your down payment. If you’d like to understand these numbers in more detail, we encourage you to book a one-on-one home buyer seminar. This seminar has received rave reviews as a great investment of time from our repeat clients.