Buyers’ Real Estate Closing Costs for Wash DC and MD (Mont. Co.)

Buyers’ Residential Real Estate Closing Costs.

Wash DC and MD (Mont. Co.)

Many real estate agents give a fairly vague answer when asked how much closing costs will run for the purchase of a home.  You may hear “3-3.5% of the contract price”. 

I’ve been guilty of this myself.  This is usually the answer we give in the early stages of a property search.

Here’s is how that 3-3.5% is broken down:

1% +/-  Lender related fees

1% +/-  Title Insurance & Attorney fees

1-1.5%  Transfer and recordation tax

The real breakdown generally comes when we’ve ratified a contract.  We have the particulars at that point.  We have the price of the property, loan amount, and proposed settlement date.

Settlement Guide: 

http://www.federaltitle.com/hud1_full.aspx

BELOW IS A GREAT Whiteboard Story by Sayitvisually.com

Closing Costs Explained Visually

HUD 1 form 

800      LOAN RELATED FEES

$_____________  801  -Loan Origination Fee (1% of loan amount)

$_____________  802  -Loan Discount Points/Placement Fees (each point. = 1% of loan amount)

$_____________  803  -Appraisal Fee   ($300-$1500; usually paid at loan application, i.e. P.O.C.)

$_____________  804  -Credit Report  $60-$75 each person/ married couple, P.O.C.)

$_____________  807  -Assumption Fee (check w/ lender, rarely used)

$_____________  808-10  -Misc. Loan fees (doc. preparation, processing, tax service, underwriting, etc.: $450-$1,000)

$_____________  811  -Loan Origination/Discount fees on second mortgage, if applicable (each point = 1% of loan amt.)

$_____________  812  -Misc. Loan fees for second mortgage, if applicable (document prep, processing, etc.: $150 – $500)