How Much Are Closing Costs for Buyer?

Are you planning to buy a house? If yes, you must know about closing costs. Closing costs are the fees and charges you pay when you buy a home. This article will give you some insights about buyer closing costs.

What are Closing Costs?

The expenses you incur after deciding to purchase a property are known as closing costs. Closing expenses are covered by both buyers and sellers, although the specifics of what they cover vary.

Who Pays Closing Costs

Closing costs for buyers might cost between 2% and 6% of the sales price. While for sellers it might cost between 8% and 10% of the sales price.

What are Closing Costs for Buyer?

Closing fees for buyer are expenditures incurred after deciding to purchase a property. Most buyers’ closing costs include taxes, loan insurance, appraisal fees, and more.

A large portion of closing costs are borne by the buyer. Below is the list of closing costs for the buyer: 

Property Closing Costs:

1. Home Inspection fee (Pest inspection + lead-based paint inspection)
2. Home Appraisal fee
3. Title Search fee
4. Title Insurance fee
5. Homeowners Insurance
6. Flood Certification
7. Survey fees
8. Application fee

Mortgage Closing Costs

1. Credit reporting fees
2. Discount points
3. FHA mortgage insurance
4. Loan Origination fee
5. Prepaid daily interest charges
6. Private mortgage insurance
7. Rate lock fee
8. Underwriting fee
9. VA Funding fee
10. Mortgage Impound account

Government fees and real estate taxes

1. Property tax
2. Recording fees
3. Transfer tax/ documentary stamp tax

Administrative Fees

1. Attorney fees
2. Settlement/Closing fees
3. Escrow fees
4. Loan-tie-in-fees
5. Courier fees

HOA Fees

1. Homeowners Association transfer fee
2. HOA estoppel fee

Buyer Closings Costs

Conclusion

The buyer and seller each has to bear a percentage of the closing cost fees. In fact, a smart buyer might convince the seller to shoulder some of the expenses. This is likley when seller is desperate to sell the property.

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