Buyer Closing Expenses:
Lender fees - buyer is responsible for the all lender fees associated with the mortgage that he/she is taking out for the purchase of the new home. Such fees may include, and not limited to: origination and discount fees, underwriting fees, credit report fees, escrow, prepaid interest, etc. Also, lender may also charge third party fees to the buyer, such as appraisal and a survey. There are many fees associated with taking out a mortgage, so shop wisely, and know the fees ahead of time. Many lenders charge fees higher than the industry standards, and many charge no fees at all. Shop around.
Buyer is typically responsible for all third party inspections, such as home inspection and termite inspection.
Home Owners Insurance
Title company fees:
Settlement (closing) fees - includes document drafting, administrative work, plus all other necessary tasks performed prior, during, and after closing. The Settlement fee will include all services performed by the title company. If you see any additional fees charged by the company, you should question them, and get an explanation of the fees.
Title insurance and title endorsements - whenever a buyer gets a mortgage associated with the purchase of the home, buyer is responsible for purchasing a Lender's Title Insurance in order to protect the lender in the transaction. This is separate title insurance from the title insurance that the buyer receives for himself/herself (which is usually paid by the seller for the benefit of the buyer). Fortunately, whenever the seller purchases the title insurance for the buyer (Owner's Policy of Title Insurance), the Lender's Policy of Title Insurance that the buyer has to purchase is deeply discounted, and relatively inexpensive.
Taxes - Buyer is typically responsible to pay the documentary stamps on the mortgage and the intangible tax on the mortgage. These fees are charged by the county where the property is located. The documentary tax on the mortgage is $.35 per $100 borrowed, and the intangible tax is $.002 per $100 borrowed. For example, the documentary stamps on a $100,000 mortgage will be $350, and the intangible tax will be $200.
Prorations - tax and homeowners association dues are usually prorated at closing, so that both the buyer and the seller pay their respective shares of the expenses, based on their ownership of the property during the year. For example, if the closing occurs in the middle of the year, the seller will be responsible for half of the real estate taxes, and the buyer will be responsible for the other half. These calculations are done at closing, and reflected on the closing statement.
Your Home is, or will be, usually your most valuable asset. Protecting it from fraudulent claims against your ownership, liens, and undisclosed heirs are just some of the reasons you need title insurance. In this site you will find information on the steps you need to take to purchase a home and secure your ownership. The real estate business could be extremely complicated for the average consumer. Title problems or defects are many times hidden, and it takes a professional examiner to uncover them. Even with all the technology, experience, and expertise available to us, the title agencies, many times title defects are hard to discover, and may create problems and affect your ownership down the road. To avoid such costly mistakes, be sure to purchase a title insurance. It’s a small price to pay for a peace of mind.
It's your investment - it's your choice: contact your Real Estate agent or Attorney and insist on United Title Group.