Closing Cost

Closing cost is money involved so it's always a good practice to:

  • Ask your closing cost upfront and write down the numbers to avoid  payment shock  or short of funds at the end which are frequently seen problems.

  • Remember closing cost is negotiable but it will generally follow common sense, local customs and mutual agreement. It might varies for different transactions

Ask agent or escrow company to clarify:

  • Who pays what?

Northern California, Click here. Other area upon request.

  • Where to get closing cost info?

    • After start of escrow, always ask title or escrow company a free Fee Quote or estimation for title and escrow costs.

    • Before apply for a loan, ask for a free Good Faith Estimate from the mortgage broker for loan related costs.

    • Before signing final papers,  ask for an estimated HUD1 (also called estimate settlement statement) from title/escrow company which will list all estimated closing costs. Ask agent and mortgage broker to help you review.

    • After closing, check and verify the final HUD1  (also called estimate settlement statement) sent by title. On final HUD1, it will list all your actual cost include prorated cost include interest, tax and insurance.

  • FAQ

    • Higher rate lower closing cost or lower rate higher closing cost?

      • No single best answer but to find a good balance between different options and see which one is the best.

      • check loan calculators for break even point

    • Who pay inspections reports?

      • Depends on seller and contract. Some seller might have done and paid all the reports. Some seller might provide no reports and willing to sell As-Is. We generally suggest buyer do his/her own research for termite, property and roof inspection. Some house with chimney and pool inspections which might be very costly. 

  • Typical closing cost in Bay Area

Items

Amount (Estimate)

Category

Paid By

Type

Notes

Loan Origination Fee (optional)   Loan Related Borrower or By Contract    

Points (optional)

 

Loan Related

Borrower or By Contract

Buyer cost

Tax de

Appraisal Fee  

$400+

Loan Related

Borrower or By Contract

3rd party fee

Fee varies. Appraiser normally sent by lender 

Credit Report 

$15+

Loan Related

Borrower or By Contract

3rd party fee

 Depend on # of borrower & whether need supplementary reports

Processing Fee

$450+

Loan Related

Borrower or By Contract

 

Depend on 1 loan or 2 loan

Lender Fee

$750-1000+

Loan Related

Borrower or By Contract

Include lender Underwritten (UW) cost, tax / flood cert fee etc.

Depend on lender

Wire fee

$25+

Loan Related

Borrower or By Contract

3rd party fee

 

Escrow Fee

$250 for refinance or Varies for purchase loan

Real Estate Related

Borrower or By Buyer/Seller according to Contract

3rd party fee

Depend on Escrow

Doc Prep Fee

$100

Loan Related

Borrower or By Contract

3rd party fee

Depend on title

Notary Fees

$50-$125

Loan Related

Borrower or By Contract

3rd party fee

Owner’s Title Insurance

$0 or Varies in different state/county

Real Estate Related

Mostly Seller or Buyer Depends on County

3rd party fee

Depend on County

Lender’s Title Insurance

$675 to actual cost

Loan Related

Borrower or By Contract

3rd party fee

Depend on title

Endorsement 

$25 to actual cost

Loan Related

Borrower or By Contract

3rd party fee

Depend on title

Courier

$30 to actual cost

Loan /Real Estate Related

Borrower or By Contract

3rd party fee

 

Recording Fee

$100 to actual cost

Loan / Real Estate Related

Borrower or By Contract

3rd party fee

 

City Transfer Tax*

$0 or Varies in different state/county

Real Estate Related

50/50 or Seller

3rd party fee, Paid by Seller or Buyer

Depend county/state

County Transfer Tax *

$0 or Varies in different state/county

Real Estate Related

Mostly by Seller

3rd party fee, Paid by Seller or Buyer

Depend county/state

Loan Tie-in

$0 to $150

Loan Related

Borrower or By Contract

3rd party fee

Depend on title

Home Warranty

$350+

Real Estate Related

Mostly by Seller

3rd party fee

Inspection/Reports Fee

$200+

Real Estate Related

Some by Seller, Some by Buyer

3rd party fee, termite/property/roof/chimney, pool etc.

Depends contract/buyer

Prorated Tax/Insurance/Interest/HOA

 

 

Buyer/Borrower

 

 

HOA Transfer Fee

$150+

 

Seller or By Contract

3rd party fee

Depends contract

HOA Certification Fee

$100+

Loan Related

Buyer/Borrower