Costs To Be Expected At Closing
Mortgage lender expenses
Your lender may charge origination points or discount points. You can also expect an appraisal fee, a credit report fee, application fee, flood certification fee, underwriting fee, or any number of other fees. It is important that you get a “good faith estimate of settlement charges” from the lender well in advance of closing so that you will know what to expect.
Most lenders insist on holding escrows for payment of future property taxes and homeowner’s insurance. You can usually expect the equivalent of two to three months of insurance and tax payments to be paid into the escrow account at closing.
Legal and Title Charges
Fees in this category will include the attorney fee, title insurance agency charges, charges and surveyor costs.
You are responsible for paying the costs of recording certain documents in the official County records. These include the Deed, the mortgage, a “notice of settlement” and, if applicable, Power of Attorney forms.
If you are paying $1 million or more for the home there is a 1% tax to the State. This is applied to the entire purchase price, not just the amount over $1 million.
Tax and other municipal charge adjustments
All municipal charges will be adjusted at closing. This will include property taxes, municipal sewer, municipal water and municipal garbage pickup, if applicable. In addition, the lender may require that the property tax for upcoming quarter be paid at closing.