When you buy a home you’ll have a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good faith estimate of all settlement costs. The title company will also have fees to consider:
- Down payment
- Loan origination
- Points or loan discount fees, which you pay to receive a lower interest rate
- Home Inspection
- Credit Report
- Private mortgage insurance premium
- Insurance escrow for homeowners insurance, if being paid as part of the mortgage
- Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in the escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
- Deed recording
- Title Insurance Policy Premiums
- Land Survey
- Notary Fees
- Prorations for your share of costs, such as a utility bills and property taxes
A note about prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.