What Closing Fees Can You Expect from a Closing Attorney?

The closing fees will first be addressed in the Good Faith Estimate provided by your mortgage
broker once you are pre-approved. Closing costs, such as legal fees, and other one-time expenses
can really add up with your home purchase. Closing attorney fees can range from 2% - 4% of the
purchase.

Just keep in mind that you have to have extra cash on hand to cover these costs or have your
realtor negotiate with the seller to pay all or a portion of your closing costs. Check with your
mortgage broker to make sure you have no surprises at closing by knowing what your closing costs
will be upfront.

Home Expenses

Here is a list of what your regular expenses for owning a home might be:

Housing Costs

• Mortgage payments
• Property taxes
• Homeowners Insurance
• Home Association Fees

Utilities

• Heating (Oil, Propane, Natural Gas)

• Electricity
• Water
• Television
 • Internet

Home Maintenance

• Lawn equipment
• Lawn care maintenance
• Repairs and home improvement
• Pest control
• Emergency fund

Day-to-Day Living Expenses

• Groceries
• Entertainment
• Credit card payments
• Loan repayments
• Medical expenses (or insurance)
• Childcare
• Pet expenses
• Clothing
• Charity
• Gifts

List of Closing Fees

If you are purchasing a home as a first time home buyer you need to set aside an extra 2% - 4% other
than your down payment to cover the cost of your closing fees. If it is a refinance your closing costs
can be financed into the new loan amount.

Here’s a brief breakdown of the most common closing costs you can expect to see with a rough
estimate of the fee for each. Please check with your mortgage advisor for the exact amounts of your
closing fees.

Appraisal (up to $450) - This amount is paid to the appraisal company to assess the fair market value
of the home. The lender will send an appraiser to due a property appraisal to insure the value of the
home does not exceed the loan approval amount.

Credit Report (up to $30) - A FICO based credit report is pulled to get your credit history and score.
The mortgage broker will pull this report on your behalf. This fee will go to the credit company.

Escrow Fee or Closing fee (This is usually $2.00 per thousand of your purchase price plus $250) - This
is paid directly to the title company or attorney for conducting the closing transaction. The title
company oversees the closing as an independent party in your home purchase.

Title Company Title Search - This fee covers the cost of doing a detailed title search on the property
through the property's records to insure there are no outstanding claims or liens against the
property.

Survey Fee (up to $400) - If you don’t have an up to date survey of the property you will have to
provide a new property survey to the lender.The survey company will verify all property lines and
things like shared fences on the property.
Flood Determination (up to $20) - This fee is paid to determine if your property falls within a flood
plain. If so, you will have to pay for flood insurance to be accepted for the loan.

Courier Fee (up to $30) - In some cases you will have to pay a small fee to cover the cost of
transporting your loan documentation. It's at the discretion of the Mortgage broker or lender.

Lender's Policy Title Insurance ($175 - $875) - This insurance to assures the lender that you own the
home and the lender's mortgage is a valid lien. Similar to the title search, but sometimes a separate
line item. Specific rate tables apply here. Check with your Title insurer or have your Mortgage broker
confirm this fee on your behalf.

Owner's Policy Title Insurance ($175 - $875) - This insurance policy protects you in the event
someone challenges your ownership of the home. There are a lot of scams out there so its really
good idea to protect your investment.

Homeowner's Insurance ($300 and up) - This covers the possibility of damages to your home. Your
first year's insurance is often paid at closing. The bank may insist on this to protect your interests
and the interests of the banks.

Buyer's Attorney Fee ($400 and up) - Depends on each State. This fee is paid to a Lawyer specializing
in Real Estate Transactions who prepares and reviews all the closing documentation on behalf of the
lender.

Lender's Attorney Fee ($150 - $500) - Depends on each State.

Escrow Deposit for Property Taxes & Mortgage Insurance - In a lot of cases you may be required by
the lender to put a deposit in escrow to cover the first two months of property taxes and mortgage
insurance. This depends on each bank’s lending practices and you may find lenders willing to include
the mortgage insurance and property taxes as part of your overall mortgage payment.
Estimated cost: 2 months of each amount

Transfer Taxes This is the tax paid when the title passes from seller to buyer.It really depends which
State you are in and if it applies.
Estimated cost: Check with your local county and mortgage broker.

Recording Fees - A fee charged by your local recording office, usually county, for the recording of
public land records.
Estimated cost: Check with your local county and mortgage broker.

Processing Fee The lender fee to process the information on your loan application.
Estimated cost: Less than $1000.

Underwriting Fee (up to $895) - The lender fee, covering the cost of researching whether or not to
approve you for the loan.
Estimated cost: Less than $895

Loan Discount Points (often zero to two percent of loan amount) - "Points" are prepaid interest. One
point is one percent of your loan amount. This is a lump sum payment that lowers your monthly
payment for the life of your loan.
Estimated cost : Check with your mortgage broker
Pre-Paid Interest - This is money you pay at closing in order to get the interest paid up through the
first of the month.
Estimated cost: Check with your mortgage broker because it depends on your loan amount.

Property Tax - Usually 6 months of county property tax.

Estimated cost: Check with your mortgage broker because it depends on county tax rate

Home Owners Association Transfer Fees (condos only) - The Seller will pay for this transfer which
will show that the dues are paid current, what the dues are, a copy of the association financial
statements, minutes and notices. The buyer should review these documents to determine if the
Association has enough reserves in place to avert future special assessments, check to see if there
are special assessments, legal action, or any other items that might be of concern. Also included will
be Association by-laws, rules and regulations and CC & Rs.

For further information please contact us at Moreira Team.