What closing costs should you expect?

There are certain typical expenses linked to closing the sale of a home. Generally speaking, closing costs are divided into two categories: fixed and prepaid. The latter include such items as prepaid insurance and taxes and will vary according to the month & day you close escrow. The fixed costs include items such as the origination fee, title insurance, and notary fees. Some of these expenses are customarily split between the buyer and seller, such as City Transfer Tax as spelled out in the purchase contract.

Closing costs that are tied to your mortgage   (Click here for more information)

  • Points (optional)
  • Appraisal Fee
  • Credit Report
  • Interest Payment
  • Escrow Account

At closing, the following taxes are usually paid   (Click here for more information)

  • Property Taxes
  • Transfer Taxes and Recording Fees

Insurance fees due at closing   (Click here for more information)

  • Homeowners Insurance
  • Flood or Quake Insurance (optional)
  • Private Mortgage Insurance (PMI) (applicable when the borrower has less than 20% down payment)
  • Title Insurance

Sellers: As we hammer out your deal, I’ll work to get the optimal sales price and can provide you with a Seller’s Net Sheet detailing your estimated closing costs and the amount you’ll pocket once your existing loan is paid off.

Buyers: If you are buying a property in Berkeley, you will get a “Loan Estimate” (LE) of closing costs within three days of submitting your loan application and a “Closing Disclosure” no fewer than three days prior to closing. These estimates are based on the loan officer’s prior experience and are required to be within a reasonable range so you’re not surprised when you get to closing time.

Don’t forget to factor in closing costs when considering a home sale or purchase. I am well equipped to assist both buyers and sellers when it comes to closings. E-mail or call me today at 510-303-5903 if your needs include a real estate pro ready for the business side of real estate.

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