CLOSING COSTS COST A LOT!
August 14th, 2009 categories: Buying, Selling
My feeling is that closing costs resemble what would happen if you put a finger with a small bleeding cut into a bowl of piranhas it just keeps being nibbled. Closing costs just keep changing and getting larger. Most Realtors feel that 2 per cent of the purchase price should cover all of your closing costs–and that is generous. What causes this grand total to be so significant? Here are some of the items.
Lenders Fees:
- Points, loan origination, or loan service fees
- Application fee
- Credit report
- Document preparation fee
- Appraisal fee
- Insurance escrow
- Tax escrow
Title Fees:
- Closing Fees
- Insurance for lender
- Various endorsements (two possibilities are Environmental and Condo)
Other fees:
- Flood certification (yes, that’s right flood!)
- Recording fee
- Attorney fee
- City, county, state transfer tax. In Chicago buyers pay $3.75 per $500 of the purchase price.
Most condos and co-ops have move-in fees and credit check fees. More often than not there will be a non-refundable move-in fee that can be as much as $250. Frequently an additional check must be left with management to cover any damage to the halls or elevator. This check is usually returned if there is no damage done by the moving process.
Sometimes part or all of the closing costs can be paid by the seller–this is a good strategy in today’s market which is so much a buyer’s market. If a first-time buyer is really short of cash because of their down payment, it couldn’t hurt to try negotiating with the seller for a closing cost allowance.
Do you need an experienced Realtor to help you find a new home or sell an old one? If you do, just call me at 312-981-2360 (direct) or 312-607-1306–e-mail is a good thing too!
This entry was posted on Friday, August 14th, 2009 at 2:09 pm and is filed under Buying, Selling. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
You seem very knowledgable about this subject matter and it shows. Cheers!