Title insurance shouldn't cost more than 1% of the purchase price in Southern California.
Title insurance costs are charged upfront: prior to or upon closing. The title insurance policy charge is negotiable between seller and buyer. Title insurance fees and charges for title services are inevitable - at least lenders title policy is required to purchase - no matter if the transaction is a refinance, or purchase, or you are buying a brand new construction home.
Also, lenders require title policies up to the loan amount, while an owner's title insurance coverage is recommended to cover full property value. You can assume that no matter the company, unless you get a short rate, all companies will be in the same range for coverage. There are more than 25 title insurers servicing Southern California. You could use your lender's advice as to which one to choose. Or, you could run your own title company search, or stick with some popular ones.
The BUYER can generally be expected to pay for:
* Lenders title insurance policy (for the amount of the loan only)
* 1/2 of the sub-escrow fee
* 1/2 of escrow fee
* Document preparation (if applicable)
* Notary fees
* Recording charges for all documents in buyer's name
* Tax proration (for any taxes unpaid at the closing)
* Homeowner's transfer fee (if applicable)
* All new loan charges/ points (except FHA/VA loans)
* Interest on new loan from date of funding to 30 days prior to first payment date Assumption or change of records fee on existing loan
* Assumption of existing loan
* Inspection fees (roofing, property, geological, etc.)
* Termite work (according to contract usually section 2 )
* Home warranty (unless paid by seller, according to contract)
* Fire insurance premium for first year
Immediately ask for a Buyers Estimated Closing Statement of Costs from your escrow company, and a HUD1 statement from your lender, and compare the two. Question discrepancies, and NEGOTIATE (or have your agent do it on your behalf). One lender I use is currently crediting for appraisals (a savings of about $500) and many lenders are offering 0 points loans. Do apply with more than one lender, and make sure at least one is a mortgage broker who can shop MULTIPLE lenders for you, looking for savings on interest rates and fees.
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