When preparing for a new home purchase, it’s crucial to plan for the average closing costs for buyer hopefuls on a budget. Closing costs are made up of various service charges associated with the entire home buying process, including appraisals and title paperwork. Because closing costs can add up to thousands of dollars, it’s helpful to prepare for the expense.
Here are some of the most common types of closing costs associated with buying a new home:
Appraisal fees cover the cost of a professional home appraisal to determine the value of the property. This cost can depend on the size of your home, but generally comes to somewhere between $300 and $400.
Professional home inspection fees usually cost a few hundred dollars. While inspections are technically an optional part of the home buying process, most buyers require them to find out if there are any major issues with a home before buying.
Mortgage lenders can charge an origination fee for creating the loan itself. This closing cost can vary from one lender to the next, but frequently comes to around 1% of the amount of the mortgage loan.
The title for your new home needs to be examined for any possible issues such as tax liens. The fee for a title search is typically between $400 and $500 paid to your mortgage lender.
Title insurance is required by lenders to cover the cost of any issues discovered with the property title. Similar to mortgage insurance, this policy protects the lender rather than the buyer. Title insurance often costs around 1% of the total loan amount.
These are not all the possible closing costs for buyers to prepare for. However, these are the most commonly associated with your new home. Inquire with your mortgage lender for more information about additional fees to prepare your budget accordingly.
Susan Shuxian Hu has been a dedicated realtor serving in Silicon Valley since 2010. With great passion, outstanding negotiation skills and due diligence, she has helped many buyers and sellers in their real estate needs. Living in West San Jose for more than 14 years, she has broad knowledge in Cupertino, West San Jose, Los Altos and Saratoga. She has enormous patience working with buyers and never tired of showing all possible properties that may fit client’s needs. Clients appreciate her best service to their satisfaction. She specialized in luxurious real estate purchase in Los Altos, Cupertino, Saratoga and Palo Alto. She also helped friend and past client’s referral working in San Francisco, Foster City and far reached Bay Area.
Susan Shuxian Hu was graduated in East China Normal University in Shanghai with bachelor and master degrees in Bio science. She came to US in 1989 and earned her Ph.D. in Molecular Genetics in Texas A&M University in 1996. After one year of postdoc in Southern Florida University in Tampa, she moved back to Orlando with her family and started working in Lucent Technologies. In 2002, Susan moved to California, Silicon Valley joined a start-up company. Since then she worked in high tech Corporation till 2009. Driven by her dream job pursuing, she found her passion working in sales by helping people in real estate after one year of education in De Anza business and real estate law study. Since then, she has been serving many people in Bay Area for their real estate needs.
With bilingual advantage, she has been actively working with Chinese immigrants as well as local engineers and residents. With rich high tech background and connection with Chinese community, Susan has served in luxurious real estate in last a couple of years.