The title insurance company or lender may require a survey of the property. This is to verify official boundaries of the property and that your lot has not been encroached upon by any structures. Depending on the size of the property and what state you live in, this cost ranges from $225 to $350.
Escrow Account: Most lenders require you to pay for some items that will due after closing. These prepaid items usually include insurance premiums (for Homeowners Insurance -- also called Hazard, or Fire Insurance -- and Private Mortgage Insurance) and Real Estate Taxes. The HUD regulations limit the amount of money a lender may require the borrower to hold in an escrow account.
Flood Certification: Some homes require flood certification fees, amounting up to $30. It verifies that the property is not in a flood zone. If the property is located within a defined zone the lender will require a flood insurance policy.
Recording and Transfer Charges: A small fee (to $50 to $150) to cover the cost of the paperwork required to record your home purchase.
Documentary stamp tax on the mortgage varies from state to state and about 35 cents per $100 borrowed.
Interim interest: Accrued interest from closing date until the end of the month.
Lender's and Buyer's Attorney: This fee (to $500 to $1500) is to pay for preparing and reviewing all of the documents needed to close your loan.
Usually an application fee, credit report fee and the appraisal fee will have to be paid when you submit the mortgage application.
You can divide all closing costs into two basic groups:
* Amounts paid to state and local governments. These include city, county and state transfer taxes, recordation fees, and prepaid property taxes.
* Costs of getting a mortgage. These include title insurance, survey, appraisals, credit checks, loan origination and documentation fees, commitment and processing fees, hazard and mortgage insurance and interest prepayments.
Payments to local governments should be the same at every lender. So should fees for appraisals, credit reports and title insurance. Total costs you can expect to pay are from 3% to 6% of the amount of your mortgage loan
