See Also: Title Insurance-Plain and Simple
See Also: Property Ownership: The Whole Story
See Also: Closings: A Home-Buyers Seminar
How Much Will Your Closing Cost?
As the settlement date approaches, a big question
on a potential borrower's mind is, "How much will I need to bring?"
All of the closing costs are summarized on the HUD-1 Settlement Statement,
and fees will be from a variety of sources. The lender will have certain
fees for providing a mortgage, and if a broker is used he or she will
certainly have fees as well. Plus, there could be items such as a survey
or termite certification, and last, but not least, the settlement and
title insurance fees from the title company.
Because every mortgage company and transaction is different, it is
impossible for the title company to know all of a borrowers' fees
in advance. However, we can let you know what our fees are going
to be for a transaction. Most of our fees are fairly fixed; the
Title Insurance Premium is based on the loan amount.
Below is a list of typical closing costs that we will charge
on a transaction, along with an explanation for each. As you
can see, most of our costs are fairly easy to calculate or
predict, with the exception of Title Insurance. We include
the examination fee, search fees, and endorsements into the
the title insurance premium, so the amount shown on the HUD
will be different from the amount calculated using a rate sheet.
||Our Settlement Fee. In South Jersey this is
usually split between the Buyer and Seller.
Closings in our office are $300 split between both
parties, out of the office is $325. For a refinance
the buyer is responsible for the entire fee.
||This goes to whoever notarizes your documents.
The buyer is charged $25 for notarizing the mortgage
package. The seller is charged $15 for notarizing the
deed. If there is a quitclaim deed on a refinance, the
borrower will be charged a total of $40.
||This is the premium for Title Insurance. This varies
on the purchase price or loan amount for a refinance.
Included with the premium are county, tax, and Superior
Court searches, examination fee, and applicable endorsements.
||This is charged if we have to make copies of the loan
documents for the borrower and/or if we receive the package
via email. If there is also a 2nd mortgage this will be
charged for that also. The charge is $25 for each copy made
or package received electronically.
||This is amount the County Clerk charges to record mortgages
and deeds, and release mortgages of record. Releases are $75 and
the borrower only pays for these on a refinance. For a purchase
the borrower pays to record their mortgage (~$185, if 15 pages) and
the deed (~$75, if 4 pages). If there is also a 2nd mortgage, that
will be added in also. If the actual documents are more or less pages
than these estimates, add or subtract $10/page.
This sums up estimated Title Company closing costs on the buyer's side of
the HUD. Other things which will effect the buyer's costs are tax
prorations, lender fees, lender escrows, and other costs such as taxes
paid in advance, survey, termite certification, other certifications
required by the lender, Homeowner's Insurance, and a host of other fees
which may or may not be associated with a particular transaction.
Return to the Title Insurance Guide