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What are Some of the Fees a Buyer is Responsible for at Closing?

Here are the fees that the buyer is responsible at closing:
  • Lenders point, loan origination or loan service fees - can be up to 3% of the loan.
  • Loan application fee.
  • Lender's credit report.
  • Lender's processing fees.
  • Lender's documentation preparation fees.
  • Lender's appraisal fees.
  • Prepaid interest on loan - prepaid per day until the end of the month in which the closing occurs.
  • Lender's insurance escrow - can be up to 20% of the cost of a one year homeowner's insurance policy.
  • Lender's tax escrow - Depending on the time of year you close this can be up to 50% of the yearly property taxes.
  • Lender's tax escrow service fee - fees to set up the tax escrow.
  • Premium mortgage insurance (PMI) - applicable if the down payment does not exceed 20% of the sales price.
  • Title insurance cost for lender's policy - Depending on what part of the country you live a portion or the full amount may be paid by the seller.
  • Special endorsements to the title - Depending on the property you pick the lender may require that the buyer pay special endorsements such as an environmental lien endorsements or location endorsements to name a few.
  • House inspection fees - any that remain unpaid.
  • Title/ escrow company closing fee.
  • Recording fees, for the deed or the mortgage.
  • Local city, town or village property transfer tax, county transfer tax and state transfer tax. These charges will vary form city to city and state to state.
  • Flood cert fee - Fee to determine if the home you pick is in a flood plain.
  • Buyer attorney's fee.
  • Association transfer fee.
  • Condo move in fees.
  • Co-op apartment fees - Fees that may be required to transfer the shares of stock in the property to the buyer.
  • Any credit checks by the condo or co-op board.

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