For many Home Buyers in Tucson AZ Real Estate. Closing Costs can be an unpleasant surprise. Most home buyers have little knowledge about what all the charges are, what they are for and the final total sum can greatly affect the profit or loss of the sale. Below, we list the items you are paying for when you are at closing on your new home purchase.
The figures below are a guideline only and can change or vary depending on whether you are buying, selling, the current market conditions, location and many other factors. Here are some bullet points put together for your review. If you find that the transaction is complicated, it is always smart to consult with a Real Estate Attorney.
- Lender discount points and loan origination or funding fee: 1-4% of the mortgage. Lenders will typically charge about 1% in fees but you can choose to pay more than that in order to buy down the interest rate. If you do not pay points, no origination fees, etc. then you expect a higher interest rate.
- Loan application fees: $0 to $500 to get the lender to begin working on your mortgage.
- Credit report fees: $25 to $85 for each credit report pulled.
- Loan processing fees: $75 to $400 to get the loan put into place.
- Document preparation fees: $50 to $400 for preparing the documents needed at the Close of Escrow.
- Required property appraisal fees: The lender will hire an appraiser to determine whether the home is worth what you are planning to pay for it. This cost is based on the size of the house and is usually $200 up to $500.
- Prepaid loan interest: The interest due on your mortgage is paid in arrears every day until the end of the month in which the closing is held. If you close on the 15th, you will owe 15 days of prepaid interest. If you close on the 29th, you might only have a day or two. That is why closing escrow later in the month is the best way to minimize prepaid expenses.
- Lender’s property insurance escrow fees: This is 15-20% of the cost of your homeowner’s insurance policy for 12 months.
- Lender’s tax account escrow fees: If you have a tax escrow, expect to pay about 33-50% of the annual property tax at closing. After closing, the property tax will be part of your monthly mortgage payment. Lender’s tax escrow service fee usually $35 to $100 to set up the tax escrow.
- Title insurance cost: will vary considerably, but is based on the price of the house and usually about 0.5% of the home purchase price. Specialty title endorsements: these can run $100 each and up.
- Unpaid house inspection fees: $250 to $400. Recording fees for deed or mortgage: $25 to $100 each.
- Title company closing fee: $200 to $500.
- Local property transfer tax: this can vary depending on your location and home price. It could be zero or it could be up to $1,000.
- Flood certification fee: usually required by lenders if your home is located within a flood plain area.
- Attorney fee: flat fee usually around $500, can be more if you have legal concerns or complications that need to be addressed.
- Homeowners Association transfer fee: For most Neighborhoods in Tucson, AZ Real Estate have an HOA transfer charge of about $300 to $400.
*Data provided are estimates and are to be used only as a guide for estimation.
For a more accurate Tucson property specific estimate, call me on 520-288-6762 or click here > Buyer|Seller Estimated Cost Sheet
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