There are certain standard costs associated with closing the sale of a house. These fees are split between the Buyer and the Seller, as spelled out in the sales contract.
Closing costs are negotiable, however each area has its normal and customary allocation of closing costs. A simple way to discover what is normal in your particular area is to contact any Escrow/Title company and have them email/fax/mail to you a list.
Buyer Loan Costs
Here are 10 questions to ask a loan officer to compare loans.
If you want to compare several bank and credit union rates on one website click HERE
Are local credit union rates lower than banks? ANSWER
If you are a member of a Local Credit Union talk with a loan officer in the branch as they may be able to beat national lenders rates. Link to a Credit Union rates.
A Loan Estimate is a three-page form that you receive after applying for a mortgage. The Loan Estimate tells you important details about the loan you have requested.
The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. The Loan Estimate also gives you information about the estimated costs of taxes and insurance, and how the interest rate and payments may change in the future. In addition, the form indicates if the loan has special features that you will want to be aware of, like penalties for paying off the loan early (a prepayment penalty) or increases to the mortgage loan balance even if payments are made on time (negative amortization). If your loan has a negative amortization feature, it appears in the description of the loan product.
When you receive a Loan Estimate, the lender has not yet approved or denied your loan application. The Loan Estimate shows you what loan terms the lender expects to offer if you decide to move forward. If you decide to move forward, the lender will ask you for additional financial information.
Standard Closing Costs
Loan Origination Fee
Transfer Taxes and Recording Fees
Flood or Quake Insurance
Private Mortgage Insurance (PMI)
Many Sellers have never sold a home before so they typically wonder what are the estimated closing costs Sellers encounter when closing escrow.
Below is a list of some of the common costs Sellers find on their final closing statements in Sacramento County:
1) County Property Taxes Prorations based on closing date
2) Owner’s Title Insurance Policy (estimated: 0.0036 of sales price)
3) Escrow Fee to Title Company (estimated: 0.0017 of sales price)
4) Notary Fee to Title Company in office (estimated: $20)
5) Notary Fee to Title Company out of office (estimated: $150)
6) Listing Broker's 1%* Full Service Commission (Based on Sales price)
7) 2%* to 2.5%* Selling Broker Commission if the Seller decides to Opt-In to the Multiple Listing Service (Based on Sales price)
8) Sacramento Transfer Tax (estimated: County $1.10 per $1,000 or City $2.75/$1,000)
9) Existing Loan County Recording Fee (estimated: $50)
10) Existing Loan Fax Fee (estimated: $20)
11) Existing Loan Quote Fee (estimated: $30)
12) Existing Loan Interest per Lender’s Demand (call your existing lender)
13) Home Warranty if paid by Seller (estimated: $500)
14) Termite and Pest Inspection (estimated: $100)
15) Termite and Pest Repairs (Based on report findings of necessary repairs)
16) Natural Hazard Disclosure Report (estimated: $100)
17) Homeowner’s Transfer Fee and Document preparation (call HOA)
To View Sample HUD1 click........ HUD1.pdf
We will continue to promote fair competition preventing monopolies in the real estate business for the benefit of all consumers as lower commissions keeps more of homeowner's hard earned equity in their pockets.
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