Congratulations! You either have the cash, or have been approved for a mortgage, to buy a home or investment property. Now that you have determined how much you can afford, remember to keep in mind your closing costs, which will run between 3-4% of your purchase price for closings with a mortgage and less than 1% for a cash deal. Closing costs typically include the following “Out of Pocket” expenses:
Appraisal
Courier (federal express)
Credit Report
Digital Imaging/Archiving Fee
Documentary Stamps on the Note: $.35 per $100.00 of note amount
E-recording fee: $4.00 per instrument to be recorded
Flat Fee Commission if company you use charges one. Usually $200-$300
Inspection Fees and other lender’s fees
Intangible Tax on the Mortgage: $.20 per $100.00 of mortgage amount
Mortgage Points
Title Insurance: Lender’s Policy
Endorsements
Owner’s Policy
Recording Fees: $10.00 first page, $8.50 each additional page
Settlement Fee
Survey / Termite Report / Roof Report (if required)
Prepaids:
2 to 13 months property taxes (changes depending on time of the year closing takes place)
14 months hazard insurance
14 months flood insurance (if required)
14 months of windstorm insurance (if required)
P.M.I. Premium (if loan to value ratio is higher than 80%)
Prepaid Interest (from closing date to the end of the month)