BUYING TIPS: TYPICAL HOME PURCHASE COSTS
Homeowners insurance — Proof of current policy is necessary at the
closing, as well as a receipt of payment of the first year's premium.
Interest on the loan — Interest covering the period from date of
closing until the end of the month.
Loan application fee — This fee, collected at time of loan
application, pays for the credit search and appraisal.
Loan origination fee — This is a one-time fee, charged by the
mortgage broker to cover origination and processing cost.
Pest inspections — These inspections can be very reasonable and
are a good investment for peace of mind.
Points — Expressed as a percentage of the loan amount, the charges
are part of the mortgage broker's fees.
Recording fees — The Buyer pays the fees for legally recording the
new deed and mortgage.
Survey fees — Lenders sometimes require a site survey showing the
location of the house and the boundaries of the property, as well as easements and rights
of way.
Title insurance — Lenders require this insurance, the cost of
which is paid by the Buyer and Seller. (See Title Insurance explanation.)
"Whole-house" inspections —
Few buyers would consider purchasing this size investment without the advice of a
qualified contractor.
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