Buyer’s Closing Costs

The costs associated with purchasing a home can be quite mystifying. Here is a quick overview that should be discussed with your Prudential Premier agent and also with your mortgage lender:

Lender Fees: Mortgage companies charge fees for their services. These may include an origination fee (1% of loan amount), discount points, document prep fees and other service fees. These are all negotiable and must be disclosed by your lender.

Title Insurance: You need to insure your investment from claims against previous owners. The cost will increase with the sale price. Prudential Premier Properties has an established business relationship with Professional Land Transfer. Buyers using this insurer can be assured of a smooth transaction.

Transfer Taxes: typically 1% of the selling price.
Homeowners insurance: required by lenders, varies with sale price and credit score.
Real estate taxes and escrows: expect to pay a full years taxes up front, this will reimburse seller for prepaid taxes and provide initial funding for your tax escrow account.
Broker service fee: Our fee is $250 for preparing necessary arrangements for a successful settlement.
Termite inspection: Typically $80-$100

A good rule of thumb is to expect buyers closing costs to be 5-6% of the puchase price.
When considering what to offer for a home, your agent will provide you with a written estimate of anticipated closing costs.