 | Jeff Otto is Branch Manager of Lawyers Title Insurance Corporation which is a member of LandAmerica Financial Group, Inc., a premier national provider of title insurance and settlement services. Lawyers Title has been in the local marketplace since 1955. Jeff has been with Lawyers Title for 34 years, the last 24 right here in Wichita. You may contact Jeff at (316) 682-9600 x 201 or by e-mail at jotto@landam.com |
Real Estate
2004-09-01 11:07:00
Breakdown of closing costs
: I'm getting ready to close the purchase of my new home! Can I get a breakdown of my closing costs?
ANSWER: Federal law gives buyers the right to inspect the closing statement one business day before the closing. The closing statement (called a "HUD-1") itemizes all the costs that you will be charged at closing. Be sure to let the closer know well in advance that you want to inspect the HUD-1 the day before closing.Buyers and sellers can negotiate as to who will pay which costs. Customarily a seller's costs may include: 1) Updating Evidence of Title - between $95.00 and $400.00, but possibly more2) State Deed Tax - Varies from State to State3) Recording Fees 4) Real Estate Commissions - commissions vary depending upon what you agreed to with your listing agent but they are generally between 6% and 7% of the purchase price5) Unpaid Real Estate Taxes - customarily these are prorated as of the date of closing; the seller pays all taxes before the date of closing and the buyer pays all taxes after that date6) Seller Paid Points - to be paid by seller if obligated to do so by the purchase agreement7) Payoff of Existing Liens - The seller will usually be responsible for paying the balance of any outstanding existing liens at closing8) Clearing Title - if title defects exist the seller may be obligated to clear these at the seller's expense. These costs can vary 9) Closing Fee - a closer will charge a fee for his or her services which can range from $175.00 to $250.00 or more 10) Attorneys' Fees - These fees can vary based on the amount of services provided 11) Miscellaneous Costs - any other costs that the seller agreed to pay in the purchase agreement A buyer's closing costs typically include the cost of financing the purchase. If a buyer is giving a lender a mortgage on the home, the lender will be required to provide the buyer with a "Good Faith Estimate" of costs so that the buyer can anticipate the costs involved with the financing. In addition to these financing charges, a buyer will usually have to pay title insurance premiums, title examination costs, recording fees, mortgage registration tax, closing fees, attorneys' fees and any other costs that the buyer has agreed to pay in the purchase agreement.
