Are you ready to close the deal?
You’ve been looking for a new home for a while, had a pros and cons list for each of your top choices, and you’ve finally picked your Charlottesville golf course home. Before giving your offer, it might be a good idea to ask the seller to help you shoulder all or some closing costs instead of asking for a discount rate. Let me help you understand what these possible closing costs are.
What are the closing costs you should be aware of?
Here is a list of fees you should be aware of. Please bear in mind that not all these costs may apply to your situation.
Lender Fees
These are fees that banks and other financial institutions charge for processing and funding a loan.
Origination Fee: 0-1% of the loan amount.
Mortgage Broker Fee: 0-1% of the loan amount.
Discount Fee: 0-2%+ of the loan amount.
Processing Fee: $300-$900
Underwriting Fee: $300-$900
Application Fee/Commitment Fee: $100-$350
Lock-in Fee: $100-$300
Services ordered by the Lender
These are what the lender charges for the different individual services that accompany your loan.
Credit Report Fee: $20-$40
Flood Certification: $20
Tax Service Fee: $50
Wire Transfer Fee: $25
Courier Fee/Postage Fee: $20-$30
Third Party Fees
These are the costs of services completed by other entities apart from yourself and the lender. An example is the company that does pest inspection or the attorney involved in assisting with sales negotiations.
Appraisal: $350-$500+
Pest Inspection: $100-$500.
Title Report/Title Insurance: $300-$1,500+
Escrow Fee/Settlement Fee/Closing Fee: $300-$700+
Notary Fee: $100-$150
Closing Protection Letter (CPL): $50
Survey Fee: $400+
Attorney fees: $400+
Government Processing Charges
A home’s transfer of ownership must be recorded by the county government. After applicable taxes, this also incurs a fee.
Recording Fee: $20-$250
Transfer Taxes: Amount varies
Prepaid Items
These are the costs that come with being a homeowner. Technically, the list below is not closing costs but they do contribute to the overall total of how much you need to close a loan. It’s good to have all the bases covered.
Homeowners Insurance: $400-$1,000+
Flood Insurance: $300-$1,000+
Tax Reserves: $500-$5,000+
Mortgage Insurance: $100-$700+
Prepaid Daily Interest Charges: $100-$2000+
Ready to buy your new home?
Once all the closing costs have been sorted, you can present your purchase offer. There may be some replying back and forth with negotiations, before you and seller agree on a price. Ultimately, the day to sign the papers to complete the purchase will arrive.
If you need further assistance, I can help you with any additional questions you might have. For more information about me, my years of experience and my work, you can visit https://www.JumpIntoGreenerPastures.com/About-Us-Central-Virginia-Real-Estate.
Know someone who’s looking for a beautiful golf course home? Call me, Pam Dent, at (434)960-0161.
In case you can not view this video here, please click the link below to view What Are the Closing Costs of Buying a Golf Course Home in Charlottesville VA on my YouTube channel: https://www.youtube.com/watch?v=8f0eECwNG0k&feature=youtu.be
Pam Dent
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