Buying a home is a very exciting time in someone’s life. It is important to keep your spirits and the excitement up during the transaction. This will help you get through the stressful times ahead while you prepare to take ownership of your new home! Therefore, it is also important to be informed and prepared to help reduce unexpected financial stress.
Typical closing costs for buyers include:
- Home Inspection - $500-$700 – Depending on where the property is located and where the inspection company that you choose is located you may be paying closer to the $700 range for travel time. Additional inspections you could get for your property would be a septic/sewer inspection or a water quality inspection.
- Appraisal - $300-$500 – Sometimes the lender you are using will require an appraisal to be done on the property to get an up to date accurate market evaluation.
- Legal Fees - $1,000-$1,500 – A real estate lawyer will help you facilitate the legal transaction of the purchase. The entire fee will include the legal fee, disbursements and any miscellaneous fees.
- Adjustment Costs - $300-$500 – In some cases the seller will prepay the property taxes or utility payments. When this happens, you will have to reimburse the seller for those costs.
- Property Insurance - $900 -$1400 – House dependant. Most mortgage lenders will require proof of insurance.
Costs that are typically paid by the seller:
- Title Insurance - $300-$400 – Title insurance will typically cover costs pertaining to compliance with zoning bylaws and that there are no encroachments upon the land or onto adjoining lands.
- Property Survey - $600-$700 – Most times the mortgage lender will require a real property report(RPR) for closing. The RPR of the land will inform you of any boundary issues and any location improvements on the property.
The items listed above are to give you an estimated value of what you can be expecting for your closing costs. Check with your realtor on their view of closing costs base on your situation.