Home Buying in Alum Rock>Question Details

Hang, Home Buyer in Alum Rock, San Jose,...

What is the closing cost ?

Asked by Hang, Alum Rock, San Jose, CA Wed Nov 3, 2010

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TerriVellios.Com’s answer
To add to my previous answer.

Your purchase contract, date of closing, escrow company, and loan type will determine your fees. So what I'm going to give you is a very rough estimate for Santa Clara County, Santa Clara City - so verify with your agent, lender etc.

If you purchase a home for $400,000 and put 20% down and pay 1% to your lender for points;
$3,200 lender points
$4,500 escrow, title, tax, recording transfer, inspections, home warranty, etc.
$3,100 prepaid reserves for taxes, insurance,

Now if you are financing with FHA , CHAFA, or HomePath loan your fees will be higher. Also, if you purchase in city of San Jose you will split $3.30 per $1000 of city transfer tax with the seller. Then again all fees are negotiable between the parties. Some sellers may offer to credit the buyer for some closing cost.

Summary some of the bullet points of closing cost,
Lender Fees, include points, appraisal, credit check, processing fees, perhaps PMI,
Title and Escrow fees also include the recording, and transfer fees
Property Tax transfer fees are $1.10 per $1000 for Santa Clara county (usually paid by Seller)
Property Tax transfer fees for city of San Jose $3.30 per $1000 split 50/50 by buyer and seller
Home Owners Association Transfer fees paid by Buyer $200 - $500
One Year Home Warranty between $250 and $600
Property Inspections, Termite Inspections, Chimney, Roof, etc. $700 - $1200

Hope this estimate helps.
Web Reference: http://terrivellios.com
1 vote Thank Flag Link Wed Nov 3, 2010
Hang:

CLosing costs are the one time fees associated with buying a home. They are required to be paid prior to close of escrow.

The costs vary depending on a number of variables. As an example, fees change based on the price of the home and the amount of the purchase being financed. In addition, the costs will be different to you as the buyer if you purchase and REO or short sale instead of a “normal” sale.

Buyer fees typically include:

Lender fees:
* Loan origination points – depends on your lender and type of loan
* Pepaid interest – depends on which day of the month you close
* Property tax impounds – depends on the type of loan and when in the year you close
* Insurance impounds – plan on 6 months of insurance, if required
* Processing/Underwriting fees – depends on your lender and type of loan
* Document prep fees – approximately $150.00
* Appraisal fees – approximately $400.00
* Funding fees – depends on your lender and type of loan
* Tax service, flood cert, etc. – approximately $150.00

Title fees:
* Escrow fee – depends on purchase price
* Owner’s title policy – depends on purchase price
* Lender’s title policy – depends on loan amount
* Doc prep, notary, recoding, courier, etc. - $200.00

Other fees:
* Prorated property taxes – depends on the type of loan and when in the year you close
* Homeowner’s dues (if applicable) – varies depending on the development
* Transfer tax (if not paid by the seller) – $1.10 per $1,000 of purchase price
* Annual homeowner’s insurance policy (if applicable) – depends on the type of home being purchased
* HOA transfer fee – varies depending on the development
* Inspections – Property (plan on up to $450), Termite (plan on up to $250), Roof (plan on up to $175), others as required, prices vary

.
1 vote Thank Flag Link Wed Nov 3, 2010
Hello Hang and thanks for your post.

Terri's spot on regarding the costs associated with buying a home here in Santa Clara County. While the information from out-of-county agents was generally correct, Santa Clara is the only county in the Northern California area that traditionally makes the seller pay for escrow fees and title charges. In other counties, the BUYER pays for these same fees.

Good luck and happy home ownership!

Sincerely,
Grace Morioka
Area Pro Realty
0 votes Thank Flag Link Thu Nov 4, 2010
Thank you for the very detailed answer Carl. I would just add that the closing costs add up to be approximately 1% of the purchase price.
0 votes Thank Flag Link Wed Nov 3, 2010
Settlement Booklet from HUD that describes Closing Costs

http://portal.hud.gov/portal/page/portal/HUD/documents/Settl…

The Form that Will Be Used to Document the Closing Costs:

http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf
0 votes Thank Flag Link Wed Nov 3, 2010
Closing cost are a percentage of your sale. It is based on the following

Property Transfer Tax for the County and City
Title
Escrow
Loan Fees.

Some of these fees are paid by seller and some split per negotiations.
Web Reference: http://terrivellios.com
0 votes Thank Flag Link Wed Nov 3, 2010
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