If you’re buying a Main Line home for sale, you’ll most likely have to pay closing costs – but what are some examples of closing costs, and how much will you have to pay?
What Are Some Examples of Closing Costs?
Closing costs can include all the fees associated with buying or selling a home. That means you’re looking at things like:
- Appraisal fees
- Credit check fees
- Deed-recording fees
- Discount points
- Loan origination fees
- Survey fees
- Title insurance and searching fees
Appraisal fees go toward paying for the home’s appraisal that your lender required. Although you didn’t get to choose your appraiser – the lender did – you’re still responsible for paying for his or her fee.
Credit Check Fees
Your lender will charge you a fee for checking your credit report. If it has to pull your credit report more than once, you can expect additional fees.
You have to pay to record the home’s deed, but the cost varies based on county and locality.
If you bought discount points, you’ll pay for them at closing. (Discount points are fees you pay directly to your lender in exchange for a lower interest rate. One discount point costs 1 percent of your mortgage amount, so if your mortgage amount is $300,000, you’ll pay $3,000 for one point.)
Loan Origination Fees
Lenders charge upfront fees for processing a new loan application – these are your loan origination fees.
If you have a professional surveyor create a drawing of the property (in many cases, you must), you’ll have to pay the surveyor’s fees.
Property taxes and other taxes associated with buying a home are typically due at closing. In some cases, your loan features an escrow account set up to pay taxes; if that’s the case in yours, you’ll make a deposit into your escrow account instead.
Title Insurance and Search Fees
Your lender will require you to buy title insurance (to protect the lender against claims on the property). You can also buy an owner’s title insurance policy to protect yourself. Another fee you’ll have to pay is a title search fee – the cost of having your title company check to see if anyone can challenge the sale or your ownership of the property.
Are You Buying a Home for Sale in a Main Line Community?
Call us at 610-608-3119 or get in touch with us online to talk about what you need – we’ll help you find it.
While you’re here, check out our:
- Gladwyne homes for sale
- Lower Merion homes for sale
- Radnor homes for sale
- St. Davids homes for sale
- Tredyffrin homes for sale