Buyer Closing Costs
All of your closing costs will be spelled out in your final closing statement provided by the escrow company. Closing costs typically run 3 to 5% of the purchase price. That is why it is important to meet with a lender in the beginning of your real estate adventure and look at the costs involved so you can make wise decisions. Closing costs a buyer in California can expect, although these are negotiable and may vary, are:
- Title Insurance Premiums for a title policy on your property
- Escrow Fee - is for the escrow company to process all of the property documents
- Document Preparation Fee
- Notary Fees - a fee is charged to notarized documents that will be recorded at the county recorder's office.
- Recording Charges for all documents in the Buyer's name
- Interest on new loan from date of funding to 30 days prior to first payment
- All new loan charges - this could include a fee for credit reports, applications, etc.
- Tax Proration - a prorated amount from the date of ownership.
- Homeowner's Association Transfer Fee (if a condo, town home or planned unit development)
- Home Warranty (most sellers in southern California are asked to pay for this item in a purchase contract)
- Any City Transfer Tax
- Fire Insurance Premium for the 1st year. Call your favorite Insurance Company after your offer gets accepted so they can begin work on an insurance policy for your new purchase of a home, condo, luxury estate or income property