Home Buying in Connecticut>Question Details

Suzi Jensen, Home Buyer in New Britain, CT

Are any of the attorney fees covered by closing costs? Or are they all out of pocket? Seller of the home is covering all closing costs.

Asked by Suzi Jensen, New Britain, CT Thu Dec 27, 2012

Help the community by answering this question:


Attorney fees are part of your closing costs. The best way to find out what your attorney fees are is by asking the attorney. You will see the breakdown of all your fees at closing via your HUD statement.

Your EMD is deducted from your mortgage amount you applied for and is brought to the closing by the seller's agent to give to the seller's attorney.

Inspections - although out of pocket expense, is also a part of closing costs, believe this or not. To know the how to about this part is ask your tax accountant.

Remember, if the seller is contributing toward your closing costs, depending on the type of mortgage program you go with, the contributing closing costs credit is based on what the bank will allow. This means, say you are obtaining an FHA loan and you asked for up to 6% closing cost credit. You only will receive the credit contribution from the seller that the bank requires for you to close.
0 votes Thank Flag Link Thu Dec 27, 2012
Attorney's fee is incorporated into the closing costs. The out of pocket you have to come up initially is your EMD (earnest money deposit ) and the home inspection fee. Unless you are using DAP or down payment assistance, you are required to come up with more out of pocket $$$ at the closing table.

Have you discussed your financing options with your loan officer? Your loan officer can give you GFE(Good Faith Estimate) for an estimate of how much you will need at the closing including the down payment.

Moreover, you have to clarify if seller is actually paying for the closing costs or is the amount wrapped up into the loan. If the latter is the case, in actuality, the seller is not paying for it but you.

Let us say that the listing price is $150K. Then you and the seller agreed on the purchase price of $145K including the closing costs or seller's concession. How much is the seller willing to give for closing costs. There should be a predetermined amount for seller's concession on the contract or during the negotiation.

Also, there is an allowable amount or limit to buyer's credit(the seller's contribution to your closing costs)

You can discuss this with your realtor. A consultation with your loan officer should shed light more on your financing or loan options.

Best of Luck
0 votes Thank Flag Link Thu Dec 27, 2012
you are welcome. also, check with your loan officer about the appraisal fee. some would require you to pay it upfront. Advise the loan officer not to order appraisal until after the home inspection. Best and good luck.
Flag Fri Dec 28, 2012
Thank you, I will ask about the GFE for the closing costs. We are receiving 6% of the purchase price of the home, which is 88,000, back for closing from the seller. Which should cover all of our closing costs. I just wasn't positive if my attorney fees would be included in that. But based on the answers I've received here I should assume that they will be.
Flag Thu Dec 27, 2012
The closing agent, in this case the attorney should be covered. Did you specify a specific amount the seller would pay or did they give you a blank check? In my opinion it's important to have a cap of what they are expecting to pay toward the allowable closing costs so everyone can plan. Closing costs can include discount points on your mortgage if you ask for them, with a blank check, but that may not seem fair to the seller if it's not clearly spelled out.
0 votes Thank Flag Link Thu Dec 27, 2012
Attorneys fees are an allowable closing cost and can be included for this purpose.
0 votes Thank Flag Link Thu Dec 27, 2012
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