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Buyer Closing Costs

rent-vs-buy a home

Closing costs will vary based on a variety of factors including the type of loan program used (FHA/Conventional/VA/USDA) and the lenders fee structure.  These figures are to be used as a guide only and any actual numbers would be provided by the lender in what is termed a Good Faith Estimate (GFE).

The GFE will encompass not only the costs to underwrite your loan but to establish your escrow account out of which the lender will pay your taxes and insurance on an annual basis.  These costs are called often termed “prepaids” and are part of the total out of pocket money that you will need to buy your home.

Care has been taken to quote anticipated inspection costs in the Greensboro real estate market but items such as the age and square footage of the home may cause those costs to vary.

Legal Fees and Title Costs
1. Attorney Fee $450 to $600
2. Survey  $350 to $450 and up depending on lot size
3. Document Recording Fees $150 to $200
4. Title Policy (vary based on loan) $250.00 to $500.00
5. Title Insurance Premium (obtain from lender or attorney)
Mortgage Costs
6. Application Fee $300 to $500
7. Appraisal $350 to $450
8. Miscellaneous Mortgage Costs $100 to $600 (variable based on lender)
9. PMI (Private Mortgage Insurance) required if you put less than 20% down
10. Origination Fee from 0.25% to 1.0% of loan amount
Inspection Costs
11. Home Inspection $350.00 to $500.00
12. Radon Inspection $120.00
13. Termite Inspection $75.00
14. Septic Inspection (if needed) approximately $500
15. Well Water Inspection (if needed) approximately $150
16. Mold, Chimney, etc (costs vary by region) talk to your agent
17. Homeowners Insurance (1 year prepaid) Insurance company to quote

There is no substitute for doing your homework in selecting your lender.  Typically, you can do as much “shopping around” as you like in a two week window and it will only count as one inquiry on your credit report.  We recommend you get 2-3 estimates.

Finally, when looking at rates, don’t just ask about a lenders quoted interest rate.  Ask them for the APR or Annualized Percentage Rate which factors in all of their fees allowing you to truly compare “apples to apples.