Home Buying Tips
As a Buyer, what are my typical costs to close?
If paying cash, just the title service fee which ranges from $150-$500. If a mortgage is involved, the borrowers' settlement charges are near 6-10% of the loan amount. (see FHA Loan Limits)
On a recent FHA $72,000 transaction where the loan amount was 71,500 (30 yr/5.5%/$405.97 PI) the following costs to the borrower were noted:
Real Estate Tax Proration (from closing day thru the end of the year) | $402.80 |
Transaction fee charged by “buyer's agent” real estate company | $225.00 |
Loan charges: | |
Origination charge (lender profit*) | |
Admin fee from lender | |
YSP or yield spread premium (difference between where the broker lends money and actually costs) | |
Processing fee | $1995.00 |
Appraisal fees: | $425.00 |
Lender required advance charges and escrows: | |
10 days of loan interest | $107.00 |
Home Owners Insurance | $1,549.00 |
Escrow reserves | $721.41 |
Mortgage Insurance for 3 months | $387.24 |
Title charges: | |
Title services and lender *title Insurance | $721.33 |
(*Regulated by State of Florida @ $5.75/$1,000) | |
Recording fee: | |
Doc stamps of mortgage (.45/100) | $250.25 |
Intangible Tax Mortgage | $143.00 |
Survey | $235.00 |
Total settlement charges to borrower: | $7,262 |
Percentage to loan amount: $7,262/$71,500 | 10% |
More tips and guides for buying a home
- What items does a home inspection cover
- Reasons to Hire an Attorney
- Must Ask Questions for the condo board
- Home Inspections 101
- Good questions to ask the seller
- 8 Important questions for your home inspector
- 8 Common Buyer Mistakes
- 13 Tips before you buy
- 12 Tips to Buying New Construction
- FHA 203K Loan Info - Mortgage plus Funds for Renovations
- Fannie Mae approved projects
- Florida Association of Realtors and the Florida Bar Approved Contract
- FHA loan limits Florida
- $8,000 First Time Home Owners Tax Credit Explained
- Florida
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