Home Buying Closing Costs ???
Closing Costs … You will need these plus your down payment.
These include Items like government recording fees, title insurance and property inspections. Other fees will vary based on if you are paying cash for the property or obtaining a mortgage loan. There can also be some small differences in fees based on if the property is single family home or one of the many types of condos.
• Evaluate the physical condition: the structure, construction and mechanical systems. • Identify items that should be repaired or replaced. • Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.
Having a home inspection completed could be the best money you will ever spend. You should have a home inspection done even with new construction. In Fact it’s probably a good idea to have inspections completed during construction stage if you are having the home built. Radon Testing is done to insure that the radon levels in the home are at or below accepted EPA levels. Although you cannot see, smell, or taste radon when you breathe air containing radon, per the EPA, you increase your risk of getting lung cancer. In fact, the Surgeon General of the United States has warned that radon is the second leading cause of lung cancer in the United States today. Plus if you smoke and your home has high radon levels, your risk of lung cancer is especially high. The EPA recommends testing for Radon up to the 3rd floor in properties, including in high rise condominiums. The cost for the testing itself ranges from from $100-$150 and is typically paid for at the time of testing. Mitch also normally asks Seller’s to pay for Radon testing and mitigation which can cost an additional $1200-$3000. However, just like purchase price the buyer’s willingness to mitigate radon is subject to negotiation. Mitch always makes sure if radon is an issue and the seller is unwilling or unable to mitigate that you as a buyer can walk away with your earnest money if you don’t want to mitigate at your own expense. Termite Inspections are done to insure that there is not active termite populations or substantial past termite damage that could result in a major expense to repair.
Home Warranty plans provide for specific types of coverage, be sure to fully evaluate the coverage in each policy before selecting a plan. Typically:
- If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
- The home warranty company calls a provider with which it has a business arrangement.
- The specific provider calls the home owner to make an appointment.
- The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
- The home owner pays a small deductible usually $75- $100.
Home warranty plans will run $350 – $600 with most plans costing $400 to $500. Most Buyers will ask for the Seller to pay for the plan but like many things this is 100% negotiable. If the Seller feels they are selling the home for less than they expected they will generally try to exclude this expense.
There are typically two title insurance policy’s. Both are one-time premiums are usually based on the purchase price. One is typically provided at an expense to the seller showing that the seller has the ability to sell the home without any issues. The second policy is for the benefit of the lender who is extending a new mortgage and is typically paid by the buyer.
The Seller’s policy is the more expensive of the polices. The typical amount for the lender’s title insurance will run $300-$500
A closing protection letter (sometimes “insured closing letter” or “CPL”) forms a contract between a title insurance underwriter and a lender, in which the underwriter agrees to protect the lender for actual losses caused by certain kinds of misconduct by the closing agent. Examples would be failure to follow written closing instructions or fraud or dishonesty in handling the lender’s funds or documents. The typical cost for the CPL is $25-$45