What all does the buyer have to pay for at closing?

Asked by Missy, Vinton, VA Sat Mar 22, 2008

First time home buyer so not sure?

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Marcia Harris, , Oklahoma City, OK
Sat Mar 22, 2008
I feel certain the answer will be different from state to state, but in Oklahoma the buyer pays for the title work to include title insurance and title search, as well as attorney's opinion if needed. The buyer also pays their lender fees which range greatly from lender to lender and is one of the things that you should consider when choosing a lender. You will also pay your first year of home owner's insurance in advance and if you are going to pay your insurance and taxes through escrow (as a part of your monthly payment) you will prepay approximately three months of your estimated taxes and home owner's insurance to set up the escrow account. The company that is representing you may charge a transaction fee and depending on the situation, you may have to pay a buyer's commission, though this is not common. Usually the commission is paid by the seller but there are legitimate reasons a buyer would pay some or all of the commission. In Oklahoma, again depending on the lender, the buyer usually pays between 3%-4% of the sales price in closing costs in addition to any down payment being paid on the loan itself.
The good news is that if you need help with closing costs, there are ways to minimize these fees. Typically you can ask the seller to contribute to your closing costs and depending on your loan program may even be able to get them all paid by the seller or even through a first time home buyer bond money program (again, that infomation is available through your local lenders). Bear in mind when asking a seller to contribute to your closing costs that their concern will be net dollars, so if you make a reduced offer AND want them to contribute to your closing costs, you are even further reducing the amount of money they will net on the sale and your offer won't appear that desirable to them.
The best way to find out what your actual closing costs would be is to contact a Realtor and a lender. Get an idea of the general price of homes that meet the criteria you are looking for and then get prequalified with a lender and have them put together a "Good Faith Estimate" for you based on the sales price you would expect to pay for a home that you would be interested in paying. A Realtor can also put together an "Estimated Cost to Buyer" sheet so that you would have a much better idea what expenses you would actually incur at closing. Additionally, they will calculate your monthly payment for you at that time as well.

Good luck and happy home hunting! :)
Web Reference:  http://www.4saleokc.com
1 vote
Mountain Rea…, Agent, SEVIERVILLE, TN
Sat Mar 22, 2008
Typically Title charges, these charges are what the title company has charged for their services. Such as settlement or closing fee; title examination, title insurance (optional). Then there are government recording & transfer charges- recording fee is minimal & the tax stamp from the state is probably your most expensive in this area of charges. Now if you have a loan on the purchase, you will have charges from the Mortgage people and that is paid at closing. They should give you a good faith estimate as to those charges once you sign on with them. The buyer and seller do share in some of these costs and another that is shared is the taxes and home owner association fees. Both would be prorated that each party would pay what part of ownership. Hope this helps. Neva Waite neva@WearsValleyRealtyGroup.com
1 vote
Greg Zaccagni, , Illinois
Sat Mar 22, 2008
Flood Cert
Tax Service
Processing Fee
Title Closing
Title Insurance
Transfer Tax (depending on city)
Recoreding Fee

Greg Zaccagni
1 vote
Brian Block, Agent, Alexandria, VA
Sun Mar 23, 2008
Hi Missy,

I wrote a very detailed blog post about Purchaser's Closing Costs in Virginia -- see the link below
0 votes
Rob Clark, Agent, Roanoke, VA
Sat Mar 22, 2008
Hi Missy,

In this market right now it is not uncommon to ask the seller to assist with closing costs. That is something that can always be negotiated.

Best of luck
0 votes
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