Hi there. New to this scene. Out of country buyer. I want to clarify some costs, in case I've been wrong... upon buying a home in the USA I

Asked by Vancouver, Los Feliz, Los Angeles, CA Tue Oct 20, 2009

assume the mortgage, down payment, closing costs and property tax. Where can I find what what the property tax is and what % closing cost do you do?

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Laurie Manny’s answer
Laurie Manny, , Long Beach, CA
Wed Oct 21, 2009
Well you certainly have a variety of answers here. Property taxes in most of CA are 1.25% of your purchase price. Buyers closing costs usually come in at about 2%. Sellers closing costs usually come in at about 3%. As a foreign investor you will most likely be required, by your lender, to put about 50% down payment.

You should start by contacting a lender. It is best to contact a direct lender. In today's competitive market these offers are being accepted more readily. Bank of America, Wells Fargo or Chase should be able to handle your needs as a foreign investor.

Once you have your loan secured you should interview agents in the area in which you are interested and find one that is well suited to your particular needs.

Best of luck in your home purchase.
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Christine Wi…, Agent, Upland, CA
Fri Mar 22, 2013
1.25 % property tax, and some areas have mello roos and special assessments taxes all of which would be found before or upon opening of escrow. Buyer closing costs are usually 3.5% for fha / 5% or more for conventional.
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Emily Knell, Agent, Huntington Beach, CA
Tue Oct 20, 2009
If you're going to get a conventional loan it is unnecessary to expect you'll be paying around 3% of the purchase price for loan, title & escrow fees.
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Emily Knell, Agent, Huntington Beach, CA
Tue Oct 20, 2009
I see you're getting a lot of different answers here. My experience has been to figure property tax at roughly 1.2% of the purchase price although it can be as low as 1.05% of the purchase price. In some newer areas there are also special assessments otherwise known as a Mello Roos tax, unfortunately this special tax is not based on a percentage of purchase price & is just property specific, it can make your total property tax approx. 2% of the purchase price.

A lot of the Major banks are offering great programs right now where Loan fees are as low as $1300-1500. If you're spending around $500,000 for example the title & escrow fees are approx. $3,500.

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Michael Rema…, Agent, Los Angeles, CA
Tue Oct 20, 2009
Hi Vancouver:
The property tax will be roughly 1.25% of the purchase price and closing costs approximately 2%. Good luck with your home search.

Michael Remacle
Real Estate Consultant
Keller Williams Los Feliz
0 votes
Monique & Joe…, Agent, Beverly Hills, CA
Tue Oct 20, 2009
Hello Vancouver,

When you are a buyer in the USA the cost of the agent is covered usually but the seller. Not including your downpayment and loan costs, other fees typically run about 1.5% of the sales price. This covers tax, title and escrow charges. For an exact or more precise amount of your closing costs we would need to know what financing you intend on doing. If you have any questions or want to "pick my brain" with any thoughts, let me know.


Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
0 votes
California H…, , Los Angeles County, CA
Tue Oct 20, 2009
Hello Vancouver,

Normally in LA the property taxes are 1.25% of the price YOU paid for the property.
for other areas, you should contact either a realtor or an escrow company in that area.
closing costs for a normal transaction should run about 3% of the purchase price, but it depends on small variables. Ask your agent.

Want more specifics? call me directly. I am a Los Feliz agent. Have been for past 20 years.

Happy home buying !
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