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Other costs
Real Estate Agent Commission: The amount you've negotiated to pay a real estate agent or broker when you buy a house — usually, a percentage of a home's price.
Origination Fee: The fee charged by the lender for processing your loan.
Loan Discount or "Points”: You can sometimes receive a lower interest rate, by "paying points". A point is equal to 1% of the amount of money you are borrowing
Settlement or Closing Fee: The fee paid to the closing agent to act as a disinterested third party who handles the finalizing of your loan and the purchase of a home.
Title Insurance Costs: To issue title insurance, government and other records must be searched to make sure no one else has a legal claim to the home. A title insurance binder and an insurance policy are also required. You are charged separate fees or an all-in-one amount for these costs. The title insurance policy you are required to purchase protects the lender. It is a very good idea to pay a little bit extra and take out a separate title insurance policy that protects you.
Attorney's Fees: If you live in an area where an attorney works on title or other parts of a home purchase, there is a fee for legal services.
Property Taxes: Any local property tax must be paid annually. If you purchase a home in the middle of the year, you may be asked to share some of the year's taxes with the home seller. The closing agent prorates the amount you owe.
City, County and State Charges: The local governments where you live may charge taxes and fees to record and stamp documents such as deeds and loan paperwork.
Survey: The cost of surveying the property to determine the size of the lot your home is on. Or, for example, whether a public utility company has a right to have access to the property.
Pest Inspection: If an appraiser notices signs your home may have termites or other pests, or if the laws in your area require it, a pest inspection and report must be done. Fees for these services are included in closing costs.
Flood Check Fee: Lenders must check Federal Flood Maps to find out if your home requires flood insurance. This fee covers the map search and issuing a certificate
Inspection: This is usually covered by the buyer (so it will not be included in your closing papers). You should budget another $200-$400 for this.
Warranty: A homeowner’s warranty is a protection plan that covers items not covered by insurance (i.e., refrigerators, heating units, garbage disposals, etc.)
The buyer OR seller may pay the cost of a home-protection plan. If the seller is not offering to pay for a home warranty and you would like one, include this request in your offer. Be specific about the kind of coverage you want. For example, if you expect the pool equipment to be covered, write this into your contract. Otherwise, the seller may only provide a standard coverage policy. Buyers and sellers often agree to split the cost of a protection plan.
Appraisal: As part of your loan application, you'll pay for your lender to order an appraisal (typically $200 to $400).
You may also opt to hire an appraiser yourself before you make an offer or sell your current home. Either way, the object is to estimate the home's current market value.
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