• Closing Costs

  • In addition to the basic mortgage underwriting, processing and origination fees that are charged by a lender, there are several other costs associated with purchasing a new property.

    Since every player on your real estate home buying team has a stake in your transaction, it’s a good idea to know how to budget for their services.

    Common Out of Pocket Expenses to Budget For


    The items below are common to a Real Estate transaction and you may be required to pay for them up-front:
    *In most cases the estimated fees for each item have been purposely left out since each scenario is different.

    Home Inspection –

    This is usually money well spent since the inspector will evaluate many aspects of your new home to ensure all systems are functioning as they are intended to.

    Condominium Questionnaire Fees –

    This may be required by your lender, and can take up to 30 days to receive.  Fees can range anywhere from $0 to $300 depending on the complex.

    Well and Septic Certifications –

    If your new home has either of these systems you will want to be sure that they are functioning properly.

    Survey –

    This document outlines the borders of your property, and the price can vary depending on the size of the lot and if it was actually staked out.  A survey is not a requirement for all purchase transactions.

    Appraisal –

    Depending on your state, loan size, property type, loan program and lender, the appraisal may be required to be paid for up-front by the borrower.  And, in some cases, more than one appraisal may be required, especially if the borrower is switching lenders and using conventional financing.
    A typical purchase transaction will involve some, but not necessarily all of these services.  It’s important to discuss any other potential out of pocket expenses with your agent and loan officer, since some of these items may not be included on the initial Good Faith Estimate.
    The important thing to realize is that the vendors providing these services will expect to get paid whether or not your transaction closes, and they may ask that you pay when services are rendered.
    A combination of just a few of these fees could easily add up to over $1,000 so it is important to have the funds set aside at the start of the process.