Customary Buyer Expenses:
The following is a list of common expenses a buyer can expect in a real estate transaction. Because every case is unique, this list may not cover every expense a buyer may see; however, we will make every effort to guarantee that our clients are fully informed from the very beginning of the process to the end. There will be no surprises. If an expense is necessary, you will know about it up front. We take this very seriously, and when choosing a title company we insist that you accept nothing less.
Lender Fees – The buyer is responsible for all lender fees associated with the mortgage he/she is taking out for the purchase of a new home. Such fees may include but are not limited to: organization and discount fees, underwriting fees, credit report fees, escrow, prepaid interest, etc. A lender may also be entitled to charge the buyer third party fees, such as appraisals and surveys. There are many fees associated with taking out a mortgage, so please take the time to shop around and know what you are paying for. Many lenders charge fees far higher than the industry standards, while others charge no fees at all.Security National Title & Escrow, LLC has over time developed strong relationships with several reputable lenders with consistently competitive rates; give us a call and we will be happy to help you in your search.
Buyers are responsible for all third party inspections, such as home inspections, termite inspections, etc.
Buyers will be responsible for any fees associated with the purchase of homeowner’s insurance. Like mortgage lenders, it very much pays to shop around to know which companies offer the most coverage per dollar. Know what you are paying for, and how much you should be paying.
Here is a brief list of fees a buyer can expect working through a title company such as RP Title:
Settlement (Closing) Fees – These include drafting, administrative work, and any other necessary tasks performed prior, during, and after closing. Settlement fees will also include all services performed by the title company. Remember, if you see a title company charge any additional fees, you have a right to question them and get a full explanation of what they are for.
Title Insurance and Title Endorsements – When a buyer gets a mortgage associated with the purchase of a home, he/she is responsible for purchasing Lender’s Title Insurance to protect the lender during the transaction. This is separate from the title insurance buyers receive (typically from sellers) for their protection. Fortunately, whenever a seller purchases title insurance (Owner’s Policy of Title Insurance), the Lender’s Policy of Title Insurance that the buyer must purchase is deeply discounted, and relatively inexpensive.
Taxes – The buyer is typically responsible for purchasing the documentary stamps on the mortgage, as well as the intangible tax on the mortgage. These fees are charged by the county where the property is located. The documentary tax on the mortgage is $0.35 per $100 borrowed, and the intangible tax is $0.002 per $100 borrowed. For example, the documentary stamps on a $100,000 mortgage will be $350, and the intangible tax will be $200.
Prorations – Tax and homeowners association dues are usually prorated at closing, which means that both the buyer and the seller pay their respective shares of the expenses based on ownership of the property during that year. For example, if the closing occurs in the middle of the year, the seller will be responsible for the other half. These calculations are done at closing and reflected on the closing settlement.