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Down
Payment
Most lenders require at
least 10% of the purchase price, though new programs are available for 3%-5% down.
100% financing can be found, but you credit must be excellent and PMI
insurance will be required.
Loan Origination Fee
A lender's fee for establishing a new loan. Government regulations
allow only 1% origination fee on FHA or VA loans. Conventional loan fees can vary from -1 to 3+ points, plus other costs. A point is 1% of
the loan.
Appraisal
Fee
Fee paid to obtain an
estimate of market value upon which the lender will base the loan amount. The cost
is about $300-$500. Non refundable.
Credit
Report
An evaluation of the
buyer's credit
habits made by a credit bureau for the lender. The cost is $50-$60. Non
refundable.
Tax
Service Fee
A charge of approximately
$75 is
made by a tax service company to verify to the lender that the taxes
have actually been paid when due or are due to be paid by borrower or
mortgage company if impounding.
Assumption
Fee
Fee of approximately $250
up to 1%
of the loan balance is charged by the existing lender for the privilege
of assuming the existing loan.
Pest
Inspection Fee
Fees of $75 - $175 is
charged by
termite companies for inspecting property for damage done by wood
destroying organisms and dry rot. It is customary for the seller to pay
for Section 1 and the buyer for Section 2 work.
Other
Inspection Fees
Other inspections the
buyer may
choose to have done are: property inspections that usually cover
foundation, electrical, plumbing and overall construction at a cost of
$300-$400. Roof inspections cost $75-$125. Geological reports cover
subject's site in relation to fault and slide zones, costing about
$100. Septic $200-$400. Radon $50-$100. Asbestos $75-$125.
Title
Insurance
This is an extended policy
with more
specific coverage than the standard policy. It covers unrecorded liens,
is based on loan amount only and is required by almost all lenders. The
cost is obtained from a rate chart and is based on the loan amount.
Miscellaneous
Costs & Fees
An estimate of $150 should
be
adequate to cover minor items as notary, recording documents,
endorsements, etc. as well as allowing for variations from these other
estimates.
Hazard
Insurance Reserve
Two month's premium is
collected for
the impound account if required. The buyer will need to either provide
or pay for coverage for the 1st year.
Prepaid
Interest
Interest must be paid from
COE
(close of escrow) to 30 days prior to the first regular mortgage
payment. An estimate of one months interest should suffice.
Mortgage
Insurance
Mortgage Insurance is
required on
all conventional loans greater than 80%. The cost may range from 1/2%
to 1% per year and 14 months premium is collected in advance. This is
coverage for the lender in case of default.
Tax
Impounds
If the new loan is going
to have an
impound account, the lender will require from 2-10 months taxes to be
deposited, depending on the time of year. Note: if taxes are prorated,
buyer's total charge for taxes should equal about six month's taxes.
Escrow
Fee
These fees range from
$750-$2500,
depending on the sales price. In some counties its customarily paid by
the seller, in other counties the buyer pays, while in others it may be
customarily split. Remember though, everything is negotiable.
Negotiating
Fees
The above fees are typical
costs
when buying real estate in Florida counties. Most of the fees are
considered buyer's non-recurring closing costs. Some of the fees are
fixed while others are negotiable. Your real estate agent can negotiate
with the sellers to pay some or most of these costs, saving you
thousands of dollars in closing costs. Ask your real estate agent and
loan agent to provide estimated closing costs of buying a home before
looking at homes.
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