Falvey Real Estate Blog

What’s Involved in Closing Costs?

Falvey Real Estate Group - Tuesday, June 07, 2016

When purchasing a home, you should be aware of and familiar with closing costs and what they entail to avoid any surprises on closing day. Closing costs are made up of different types of fees that are charged by people associated with the home sale, such as banks, lenders, and title companies. Typically, these fees are about 3-4% of the total price of the property being purchased.

Here’s a look at a few of the most common closing costs associated with a home sale!

Underwriting Fee

  • Average cost is up to $795.
  • Paid to your lender for researching whether or not you were a good candidate for your loan.

Credit Report

  • Average cost is up to $30.
  • Covers the cost of your tri-merge credit report.

Appraisal

  • Average cost is up to $450.
  • Paid to the appraisal company for determining the home’s market value.

Title Search Fees & Insurance

  • Average cost varies.
  • Also called “Exam Fee.” Covers the cost of the title company’s search of the property records.

Closing/Escrow Fee

  • NYS Mortgage tax: +/- 1%.
  • Recording Fees: $350 - $400.
  • Buyer’s Attorney: +/- $450 - $600.

The above listed are just some of the many different types of fees associating with closing costs. For more information, do not hesitate to ask your Realtor to explain and break down the fees for you!

Time to purchase a new home? Contact Falvey Real Estate today!