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Corruption and Transparency
I. The Facts Just days before a much-awaited donor conference, the influential International Crisis Group (ICG) recommended to place all funds pledged to Macedonia under the oversight of a "corruption advisor" appointed by the European...
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Do The Hardest Thing First And The Rest Will Be Easy
You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated - send to: GregReid@AlwaysGood.com Do The Hardest Thing First...
Work From Home in 3 Easy Steps
Does the drive to and from work wear you out? Do you wake up depressed because you are going to a job you hate, come home depressed because you did a job you hate, and go to bed dreading going back to a job you hate? It may be time to consider a new...
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Working With Your Real Estate Attorney
Purchasing or selling a home will probably be one of your largest and most important financial transactions. Before signing a contract to purchase or sell a home, both buyer and seller should consult an attorney to assure that the real estate...
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Real Estate Closing Costs Exposed
Closing costs can come as a shock to anyone buying or
selling real estate - especially to investors. Here's
an explanation of the various expenses you must plan for:
Down Payment
Most lenders require a down payment of from zero to 20% for
a normal home purchase.
Lender's Loan Origination Fee
Government regulations allow 1% origination fee on FHA or VA
loans. Conventional loan fees can vary from 1 to 3 points or
more. A point is 1% of the loan.
Appraisal Fee
About $300-$500. Non refundable.
Credit Report
$50-$60. Non refundable.
Tax Service Fee
In some areas a charge of approximately $75 by a tax service
company to verify to lender that taxes are actually being
paid.
Assumption Fee
Fee of approximately $250 up to 1% of the loan balance charged
by existing lender for permission to assume existing loan.
Pest Inspection Fee
A fee of $100 - $175 is charged for inspecting property for
wood destroying organisms (termites). Customary for the seller
to pay.
Optional Fees
At buyer's option: property inspections that cover foundation,
electrical, plumbing and overall construction at a cost of
$300-$400. Roof inspections cost $75-$125. Geological reports
about $100. Septic $200-$400. Radon $50-$100. Asbestos
$75-$125.
Title Insurance
Cost determined by a rate chart and is based on the loan
amount.
City Transfer Tax
Imposed within the corporate limits of some cities.
The VA does not
allow the veteran buyer to pay any portion of
this cost.
Miscellaneous Costs & Fees
$150 should cover notary, recording documents, endorsements, etc.
Hazard/Fire Insurance Reserve
Two month's premium is usually collected for the impound account
if required. Paid by buyer.
Prepaid Interest
Interest must be paid from close of escrow to 30 days prior to
the first regular mortgage payment.
Mortgage Insurance
Required on all conventional loans greater than 80%.
Cost ranges from about 1/2% to 1% per year. 14 months premium is
collected in advance. For benefit of lender in case of default.
Tax Impounds
When new loan is going to have an impound account, lender will
require from 2-10 months taxes be deposited in impound account.
If taxes are prorated, buyer's total charge for taxes should
equal about six month's taxes.
Escrow Fee
$750-$2500, depending on the sales price. Can be paid by buyer,
seller or split. Everything is negotiable.
We have listed examples for typical closing cost. Closing
procedures and costs vary from area to area.
Your real estate agent and loan agent can provide estimated
closing costs. Don't neglect to add them to all the other
costs of buying real estate when determining the affordability
of a property.
About the Author
About The Author:
Mark Walters is an investor and author. You can find his
published material at http://www.CashFlowInstitute.com
http://cfiblog.blogspot.com/
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