CLOSING COSTS
Here's where you can find the closing costs of North Carolina. On average, buyers pay around 2-5% of the purchase price for closing costs. These are some common closing costs for buyers:
Appraisal Fee:
This fee pays for the appraisal of the property.
Credit Report Fee:
This fee covers the cost of the credit report requested by the lender. This may have already have been paid when you applied for your loan.
Loan Origination Fee:
This fee covers the lender's loan-processing costs. The fee is typically one percent of the total mortgage.
Loan Discount:
You will pay this one-time charge if you have chosen to pay points to lower your interest rate. Each point you purchase equals one percent of the total loan.
Title Insurance Fees:
These fees generally include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees.
PMI Premium:
If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this insurance.
Prepaid Interest Fee:
This fee covers the interest payment from the date you purchases the home to the date of your first mortgage payment. Generally, if you buy a home early in the month, the prepaid interest fee will be substantially higher than if you buy it towards the end of the month.
Escrow Accounts:
A mortgage lender will usually start an account that holds funds for future annual property taxes and home insurance. At least one year advance plus two months worth of homeowner's insurance premium will be collected. In addition, taxes equal approximately to two months in excess of the number of months that have elapsed in the year are paid at closing. (If six months have passed, eight months of taxes will be collected.)
Recording Fees and Transfer Taxes:
This expense is charged by most states for recording the purchase documents and transferring ownership of the property.
Closing Attorney:
Real estate closings require preparation, execution, and notarization of documents. Closing attorneys specialize in real estate law and to prepare or review all documents related to your closing. They also ensure that your rights in the transaction are adequately protected in the process.
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Always consult a real estate professional in your area to find out which fees and how much you will be expected to pay during the closing of you prospective home. Your closing attorney will give you a breakdown of your closing costs at least 3 days prior to closing on your home. No worries, you will not be in the dark.