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The hidden costs of buying a home: loan closing costs |
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Depending on the amount you borrow, loan closing costs usually run about 3% of the loan amount whenever a new loan is being created for the purchase. You can write into the contract that the seller is to pay closing costs, but in effect you, the buyer, are really the one paying the bills, so it makes sense to understand the details. "Closing costs" is a catch-all department and includes a variety of costs associated with the new loan itself: a. the loan origination fee accounts for the bulk of closing costs. This is a fee paid to the lender for taking the loan application, and assembling the "loan package." Typical fee is 1% of the loan. b. the attorney's fee is paid to the closing attorney for the title search (looking at county records to make sure the property is owned clearly) and for physically handling the closing between the parties. Typical attorneys fee for a real estate closing is about $500. c. Some states have special taxes related to real estate transactions. For example, Georgia intangible tax on new loan created is $3 per thousand, which equals 0.3% of loan. Another totally unnecessary tax from your friends at the Legislature, adding up to $300 for nothing. d. Appraisal of the property by a certified appraiser usually costs about $300 for a standard house, but more for non-standard properties like resort homes or mansions. e. A survey of the boundaries of the property and location of the buildings on the lot is the only guarantee the lender has that you are actually buying the house you think you are buying. Plan on about $300, and I recommend that you insist on a survey unless one has been preformed recently. f. The lender will purchase lender's title insurance from the closing attorney. Errors in title are rare, but do happen. This insurance will only protect the lender. Typical fee is about $200. Owners title insurance is available to protect you at a cost of about $2 per thousand of purchase price. I strongly recommend you buy it. g. Miscellaneous charges like tax service fee ($75), credit reports ($50), recording fees ($45), photo fees ($25), document review fees ($95), courier fees ($?), and anything else the lender thinks they can get away with. I call these "junk fees" because they are mostly just gravy for the lender. Try to get out of them if you can. Lenders are required by federal truth-in-lending laws to give you a "good faith estimate" of all the costs you will incur in closing your home loan. Ask for your estimate before you make loan application, and ask which fees are negotiable. Your greatest savings can be in the areas of loan origination, attorneys fees, and junk fees. Get a firm written commitment from your loan originator before you make loan application. And take that estimate to other lenders to compare costs.
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Upcoming Events
"EPA CERTIFIED RENOVATOR" TRAINING
Do You Work with Real Estate? You Must Be LEAD SAFE CERTIFIED as of April 22nd.
To all owners, realtors, investors, property managers, contractors, electricians, plumbers and painters. Do you ever engage in any level of renovation? If so, read this:
Any renovator, from owners to contractors, from plumbers to electricians to painters, who disturbs lead paint while working in a pre-1978 home, school or day care center, now must be Lead-Safe Certified. If you’re not, you can face tens of thousands of dollars in fines. Plus, you put the health of yourself, your workers and your customers at risk, which could result in lawsuits. One simple 8 hour class certifies you for five years. It’s that easy.
Since April 22, 2010, there are new Federal rules regarding how you perform any work that disturbs lead-based paint in homes, child-care facilities and schools built before 1978. You now must be EPA certified and follow specific work practices to prevent lead contamination.
Failure to follow the new rules can result in federal fines of up to $32,500 per day or up to 5 years in federal prison, or both. Don’t take a chance - it’s not worth it.
How To Become an EPA Certified Renovator:
In just one day, John Adams will teach you how to meet all EPA requirements and become an “EPA Certified Renovator.”
Don’t wait - register now! Click on “Seminars” and choose your day!
- Friday, July 30th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 06th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 13th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 20th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 27th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
Total Course Cost: $295, includes exam and EPA-HUD 400 page manual
Space is limited to 20 participants.
Training services provided by Seagull Environmental Management Co, Inc.
Courses are approved for purposed of certification under Section 402 of TSCA for the Certified Renovator.
This course has been approved by the Georgia Real Estate Commission for 7 hours of Real Estate Continuing Education
For more information, call toll-free 888-373-0029
Click above on the "Seminars" button to register
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John Adams Presents
“The MetroVestAtlanta.com REO Bus Tour”
Get on the bus for a tour of South DeKalb County’s “Real Estate Owned”
homes. Each house you visit will be available that day for purchase at
a giveaway price, regardless of current condition. Financing is
available!
Throughout the day, we will hear from mortgage providers, people in the
construction business and property managers all discussing today’s
situation with Bank Owned REO properties.
Who Should Attend: Investors, Realtors, Lenders, Prospective Buyers, and
anyone who might want to buy a super-bargain house and either do the
rehab themselves or have all the work performed by the pros.
You will see abandoned dumps and finished products, and everything
in between. And Snap will be there to answer all your questions and
explain the rehab and rental strategies.
Saturday, August 21st, 9:30 AM to 4:00 PM
Your $49 fee includes the bus tour and lunch. You must make reservations. No walk-ups.
There is limited seating and the seats are filling fast. ACT NOW before you miss the bus.
We will be meeting at Suburban Plaza, 2643 N. Decatur Road and Church Street, Lower Level, Decatur 30033 (beneath Hancock Fabrics, in the arcade.)
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Essentials