This the number one question I get. Chris, what’s all this going to cost me, the Buyer?
Here’s the way it breaks down in APPROXIMATE numbers:
-Property inspection – $400.
-Termite inspection – $80.
-Loan application – $250.
-Condominium or Home Owners Association application – $200/occupant over 18
-Lenders Title Insurance policy-$500.
-Documentary stamps on the Mortgage at 0.35% (0.0035) x Loan Amount.
-Intangibles tax on loan at 0.2% (0.002) x Loan Amount
-Record the deed and mortgage in the public record-$200.
-Survey of the property-$400.
-Loan Closing Fee-$500
-Escrow account initial deposit which is typically 3 months of property tax and insurance escrow amounts.
-Property Insurance – VARIES DRAMATICALLY, from $2,000 to $6,000+
-Lender Origination fees – Again, VARIES DRAMTICALLY from $0 to 2% of the Loan Amount
The Lender expenses are the largest unknown. When you make application for a loan your lender will provide you with a Truth in Lending (TiL) statement which will have the estimated expenses associated with your loan. DON’T BE ALARMED. The TiL statement does not take into account what the Contract specifies. Most notable it is normal and customary in Palm Beach County for the Seller to provide you with a deed with the Documentary Stamps paid on it and ready to record. This is 0.7% of the Purchase Price that the Seller will Pay. Also, the Seller will pay for the Owners Title Insurance premium.
If you have any questions call me at the office at 561-626-8550.