Buyers Closing Costs
Thinking of buying a home in the Outer Banks? Wondering how much money you should set aside to cover closing costs?
You’ll need to pay for the inspection and appraisal up front; the rest of the costs will be paid at the closing table. Please note that these are estimates and that the final costs should be determined by your real estate attorney. We cannot be held liable for any errors.
CLOSING COSTS ESTIMATES
(B=Buyer Cost S= Seller Cost)
- Loan Origination Fee: (B) A fee that covers the lender’s administrative costs in connection with the loan. Typically 1% of the loan amount. Can sometimes be financed into the loan or waived at a higher rate.
- Discount Points: (B) A one-time charge used to adjust the lender’s yield on the loan to match what market conditions demand. One point=1% of the loan amount. Average = 0-3% of the loan amount
- Appraisal Fee: (B) A statement of property value made by an independent appraisers. Conventional appraisals average $350-$400, FHA/VA appraisals average $450=$475
- Credit Report: (B) A report obtained from one or more of the reporting agencies to check the borrower’s credit history. Average $20.
- Underwriting Fee: (B) A fee charged by some investors to underwrite and approve the loan application. Average $600-$1000.
- Tax Service Fee: (B) A one time fee charged to the lender by an independent tax reporting agency to search tax records annually and route the property tax billings to the lender for payment. Average $75.
- Mortgage Insurance: (B) This protects the lender for loss due to default, and allows the borrower to obtain loans with less than 20% down payment. Cost varies depending on the loan-to-value ratio, type of loan, etc. FHA charges 1% at Settlement.
- Hazard Insurance: (B) This protects the owner against loss due to fire, theft and natural hazards. The first 14 months are paid at closing. ($500 -$700 for homes in the $100K-$300K range)
- Title Insurance: (B) Protects the buyer against loss due to claims against the property, which cannot be found on public record. $2 per $1000 of coverage ($1/$500 or portion).
- Interim Interest: (B) Interest on the new loan that is collected at closing to pay through the end of that month. The first payment will not be due until the second full month following closing.
- Escrow Deposits: (B) Funds held in an account by the lender to assure future payment of the hazard insurance, property taxes and mortgage insurance. Base is 2 month’s hazard insurance, 2 month’s mortgage insurance, 4 month’s taxes – may be more, depending on time of year.
- Attorney Fees: (B) Fees for legal services of the closing attorney for title examination, obtaining title insurance, and conducting the closing. Average $500-$700
- Survey: (B) Property survey by an indendent surveyor that shows the property lot lines, easements, encroachments, and any inoprovements. Average $450 – $550
- Pest Inspector: (B) Inspections for the presence of and damage from wood-destroying insects. Average $75.
- Home Inspection: (B) Fee paid to an independent, licensed inspector to inspect the components of the property. Average $350-$500.
- Radon Test: (B) Fee for testing to determine the presence/absence and levels of radon. Average $75.
- Well & Septic: (B) Tests to determine the adequacy and condition of the well and septic systems. Allow at least $100 to $125.
- Mold Inspection: (B) Surface and/or air testing for the presence of harmful molds. Cost depends on type and extent of testing. Allow $100 – $150.
- Property Taxes: (B) (S) County and City Property taxes will be prorated based upon the number of days that the Seller has owned the property during the current calendar year. If the property taxes have not been paid for the current year, the Seller will owe the Buyer the property taxes for the time the Seller has owned the property. However, if the property taxes have already been paid for the current year, the Buyer will reimburse the Seller for the property taxes paid during their ownership. This is accounted for on the Closing Disclosure or HUD Settlement Statement at closing.
- Recording Fees: (B) (S) Fees paid to the Clerk of Courts to record the deed, deed of trust and any other necessary documents.
- HOA Dues & Transfer Fees: (B) (S) Home Owner’s Association (HOA) Dues will be prorated based upon the current status of payment on a monthly, quarterly or annual basis. HOA Transfer fees are customarily paid by the seller, but payment is dictated by the sales contract and can be negotiated for either party. HOA Transfer fees are paid to the HOA Management Company and are typically $150-$300 dollars.
- Express Charge: (S) Charges to defray the cost of expressing the loan package overnight to the lender. Average $30.
- Revenue/Deed Stamps: (S) Fee Charge by the North Carolina. $2/$1000 of sales price (plus$1 for $1-$500 portion)
- Real Estate Commission: (S) Real estate sales commissions are paid by the Seller for both the Buyer’s Agent and the Seller’s Agent (referred to as the Listing Agent). Total Real estate commission is typically between 5% and 6% of the total purchase price (between 2.5% and 3% for each agent).