When you purchase a property, other than the downpayment, you need to prepare for closing costs. Closing costs are all the fees you need to pay to get the loan and close the transaction; they are typically one to three percent of the purchase price, mostly depending on the loan. They include but are not limited to:
- loan origination fee (point)
- appraisal fee
- credit report
- hazard/fire insurance, in some cases, flood insurance
- private mortgage insurance (PMI)
- prorated taxes and assessments
- escrow and title fee
- title insurance
- notary fee
- recording fee (recording to the County Recorder's Office)
- inspections (physical, termite, roof, etc)
- home warranty
In a short sale or bank owned transaction, seller (the bank) typically chooses the escrow and title companies, but they can be negotiated.
Escrow fees can be estimated by: $250 + $1.50 per every $1000 of the purchase price if the purchase price is until $1 million; for over $1 million, it's $250 + $1 per every $1000.
It is also important to know information about your location's flood risk to have an idea on how much water might get into your place. Info can be avail in floodplain management office or building department. Anyone can be a victim of financial difficulties because of the damages that brought about by flooding.
ReplyDeleteYou are absolutely correct. Just that in our area (or area where I service mostly), flooding is very rare.
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