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 â€˜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
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.
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.