Thursday, November 18, 2010

Typical Escrow Closing costs for Buyers

First time buyers will often wonder how much their closing costs would amount to. Below is a typical breakdown of costs. In bank involved transactions, buyer also pays certain other costs that banks will not pay eg. First year Home Warranty coverage ($285-$355), third party disclosure source document ($123), etc. From a planning standpoint, we give a 0.7-1% rule of thumb depending on whether it is a short sale, foreclosure, or regular sale. The lender will also require an appraisal ($450) to ensure that the buyer is not overpaying and that the lien on the property is covered by the value of the property. Buyers also get a physical inspection done by a licensed inspector ($400) – just like getting a car checked out prior to purchase.

Offer Price: $525,000
Loan Amount: $417,000

Escrow Fee: $1037.50
Loan Tie-in: $250.00
(one) HOA fees: $150.00
Electronic Download: $200.00
Archival Fee: $24.50
Overnight Fee: $30.00
Title Insurance: $611.00
Endorsements: $200.00
Wire Fee: $25.00
Sub-escrow fee: $62.50
Notary Fee: $150.00
Recording Fee: $160.00
Total: $2900.50

Additional fees:
HOA plus tax proration
Lender’s closing costs calculated once escrow receives the loan docs
One month’s HOA dues for the buyer.

For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at More to follow within the next couple of weeks.

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