By Diane Camella
Feb 17, 2013
Q: What kinds of fees are included in closing costs for a buyer?
A: When purchasing, you have closing fees due for both your attorney and mortgage company.
On the attorney side you have the following fees: Basic attorney fee title search fee, title insurance (mortgage is mandatory, owner’s is optional), title recording, courier or wire fees, recording of deed fee, fuel oil or propane adjustment if the seller has some left in the tanks.
On the mortgage side you have the following: Origination fees, processing fees, underwriting fees, document prep fees, tax escrow (this is the big one, with six to nine months required up front), home insurance prepaid for a year and sometimes a month or two extra, and prepaid interest for the loan amount from the day of close to the first of the month.
All of these amounts depend greatly on the loan amount. Remember to never be afraid to ask questions, even if you think they are silly.
Buying a home is probably the biggest purchase you will make in your lifetime so get all of your ducks in a row before you look and make sure you are working with true professionals.
— Diane Camella, Re/Max Trumbull, 203-268-1118