Who Pays For What
A Buyer’s Estimated Guide to Closing Costs
While some costs associated with the closing of your new home may be negotiable, Buyers can typically expect to pay for the following:
Whether you are a buyer or seller, many times along with a home inspection comes the anxiety that something may actually be found wrong with the home. I can be accurate when I say that 9 times out of 10, yes the inspector will no doubt find something either not working as intended or not working at all. They are obligated by law to tell you about anything that is amiss. I’ve seen inspectors find 1 tiny ant on the kitchen counter and write in the report that the house had an ant problem, so BEWARE! But don’t be afraid.
Buyers are highly encouraged to schedule inspections as quickly as possible once an offer has been accepted and executed. This not only gives them the time to coordinate appointments with the various inspectors they will be using, but also gives them time to go over the inspection reports thoroughly with the inspector(s) and their agent. Sometimes buyers may want to get estimates for repairs to be negotiated. All of this takes time and waiting until the last minute not only rushes them but jeopardizes the Option Period.
Besides a certified, general inspector, there are also those who specialize in specific areas of the home such as HVAC inspectors, who specializes in AC and heating systems, termite Inspectors, who look for evidence of termites and other wood destroying insects, environmental inspectors, pool and spa inspectors, inspectors for wells and septic systems and then there are structural engineers to name a few.
Below are items often found during an inspection. If you are a seller, you may want to address any issues prior to the inspection. If an item is found during the inspection and the buyer negotiates the repair to be done prior to closing, you will more than likely be required to have the work done by a licensed professional, with receipts for the completed work brought to closing.
- Lender’s Application Fee
- Lender’s Appraisal Fee
- Survey Charge
- All New Loan Charges (Except those required by the Lender for Seller to pay)
- Interest (On new loan from date of funding to 30 days prior to 1st payment date)
- Assumption Fees/Change of Record Fees (To take over payments of an existing loan if applicable)
- Beneficiary Statement Fee (For assumption of existing loan if applicable)
- Title Insurance Premiums
- ½ of Escrow Fees
- Document Preparation (If applicable)
- Recording Charges for all documents in the Buyer’s name(s)
- Property Inspections (Including but not limited to General, HVAC, Termite, Structural, Environmental Inspections)
- Tax Proration Fees
- Homeowner Association Dues (From the date of property acquisition)
- Homeowner Association Transfer Fee (To transfer from Seller’s name to Buyer’s)
- Home Warranty (Per contract)
- Hazard Insurance (For 1st year)
- Courier Fee
- FedEx Charge (To return package to Lender)
- Other fees and charges may apply