Oct. 25, 2010

What Are Closing Costs : Whatcom County First Time Home Buyer

One of the things that often gets overlooked when first considering purchasing property are the closing costs associated with it.  You'd think it would be fairly simple; I give you the money, you give me the house.  End of transaction, right?

Well unfortunately, in the process of purchasing property in Whatcom County, there are a multitude of things that need to take place that require 3rd party assistance prior to ‘closing' the deal.

The closing costs are defined as those charges paid to multiple entities during the transaction.

Keeping in mind, costs such as these can change and vary depending on a variety of circumstances, here's the general breakdown of Closing Costs in Bellingham WA

Loan Fees

For the following examples, we'll be using a property that is being sold for $100,000.00.

In this case, you're looking at a Loan Origination fee of 1 point (aka 1% of the sale price).  The appraiser fee which will run you around $300-350.  A Credit Report coming to around $65.  A tax service fee around $75.00.  An underwriting fee of around $300.  And a flood certificate at $25.

There may be more or less fees depending on the lender.  You may obtain a good faith estimate from a lender to get an idea of all costs associated with obtaining a loan.

Title Fees

Title Insurance.  When you go to purchase a home, the seller purchases title insurance which covers you (the buyer) and you purchase title insurance which covers the bank (your lender).  If it's a cash purchase, the buyer does not need to pay for Title Insurance.

Escrow Fee:  The escrow fee is split with the seller.  In the case of purchasing a property for $100,000.00, you'd pay around $420.  In sales tax, you'd pay around $35.  You'd pay real estate taxes which are pro rated and dependent on the property and time of year.  And finally you're looking at a Recording fee of around $155.

As you can see, the costs can add up. However, if you're considering purchasing property, I'm more than happy to assist you in calculating and planning for all Closing Costs.

Share This Post
Please enable Javascript to comment on this blog

Sites We Follow