Posts Tagged ‘buyer closing costs’

Buyers Closing Costs

Posted on: May 6th, 2012 No Comments

The following are costs typically paid by the buyer at a home closing:

Contract Sales Price

This is the price the buyer has agreed to pay the seller for the home.

Items Payable in Connection With Loan

Loan origination fee, loan discount points, recording fees, credit report, appraisal fee, survey, flood certification letter, and any other loan costs required by the lender.

Government Recording and Transfer Charges

Documentary tax on mortgage ($0.35 per $100 of loan), intangible tax on note ($0.20 per $100 of loan)

Title Charges

Closing fee, title search, title insurance for buyer and lender, notary fees, attorney fees, and documentation preparation fees.

Escrow or Reserve Items

Prepaid interest, taxes, hazard insurance, mortgage insurance, homeowner association dues, property taxes, and flood insurance.




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What is a Flood Certification?

Posted on: May 1st, 2012 No Comments

When you plan purchase a home, it’s important to know many details before proceeding. One of those details is what flood zone the property is in. A flood zone describes that land area in terms of its risk of flooding. FEMA (Federal Emergency Management Agency) flood maps are examined using the address or geographic coordinates of the property.

Flood zones can affect you financially in two ways. The first is the cost of your homeowners insurance. If you live in an area that is at high risk for flooding, you can expect to pay an additional cost for flood insurance. Second, a lender may not finance you if the home you’re buying is at risk. To protect its interests, a lender will order a flood certification before they disburse funds on a home loan. Using the location on the FEMA flood map, the flood certification provider certifies what, if any, flood zone in which the property is located.

See the “Flood Zone Designations” section in Resources for Home Buyers post for more information.

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