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    Common Fees Included in the Closing Costs when you Buy a Home

    Are you planning to buy a new home, but want to understand more about what some of the costs will be? While there are a number of expenditures that come with buying a home, the one we want to touch on today are the closing costs for your home purchase. Closing costs essentially are a fee to process and execute your home purchase. Closing costs can be a certain percentage of the loan or the price of the home you are purchasing. It’s important you discuss your specific closing costs breakdown with your real estate agent and home mortgage loan specialist. Now let’s take a look at common fees included in the closing costs when you buy a home.

    Common Fees Included in the Closing Costs when you Buy a Home

    Common Fees Included in the Closing Costs when you Buy a Home

    1. Loan Fees – This set of fees covers the processing and verification of your viability to meet your loan requirements. There could also be a fee for working with the loan broker. This fee might also include your mortgage insurance costs and any other fees required by certain government loans.

    2. Appraisals and Survey Fees – These two fees will clarify that the property you are looking at purchasing falls within fair market value and that the home’s property lines are accurate.

    3. Title Fees – You will have a title company review any past records to confirm there isn’t a lean on the property or other title-related issues before purchasing the house. Title insurance will also be worked in here for some policies to protect your lender and/or yourself in case claims come up after your home purchase is complete. Discuss this with your real estate agent – sometimes this fee is covered entirely by the buyer and sometimes it can be divided by both the buyer and seller.

    4.  Property Taxes – You will likely pay for some portion of property taxes at the time of purchase. It can vary by location and lender. Knowing this cost before you sit down at your closing is important in understanding your final closing cost number.

    5. Homeowner Association Fees – If the home you are purchasing is located in a neighborhood with an HOA, these fees will likely be included at this time.

    6. Homeowner’s Insurance – This is often included in your monthly mortgage payment. However, at the time of your home purchase, it might be required to cover up to a full year at closing.

    7. Miscellaneous Fees – You might also need to cover costs like an attorney, assumption fees if you are taking over a loan, or points from your lender.

    When Do You Pay Closing Costs?

    Most often you will pay your closing costs with a cashier’s check or certified check from your bank at the time of closing. When you sit down and sign all the paperwork to purchase your home, you will also deliver the check.

    Some people will have some of the closing costs worked into their loan. Review this process with your home mortgage specialist or your real estate agent. There might also be a closing officer involved with your process to guide you with instructions they require for this transaction.

    Your Savvy Memphis Area Real Estate Agent

    When it’s time to sell your existing home or buy a great new place, turn to a highly-regarded and well-informed local real estate agent. You want a real estate agent that will guide you during both your local home selling and buying process. Check out my other great articles to help you through your home selling and buying experience here in Memphis.

    And, take a minute to learn more about me and how I can guide you with your house sale, new home purchase, or buying a great parcel of land. With over 15 years of top-notch service for my clients, I want to help you with your home selling or buying process as well. Contact me at (901) 828-8919 or drop me a quick note at angie@angiekelley.com and we can speak in person about your plans and options. I look forward to speaking with you today!

    Angie Kelley, Crye-Leike Realtors
    (901) 828-8919 or (901) 756-8900