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Wayne's Real Estate Tips
Helpful Articles and Tips from Wayne Newsom
800-726-1405 or 970-586-4425

What You Have Always Wanted To Know
About Closing Costs, and ...

CONVENTIONAL LOANS:

SELLER'S CHARGES

  1. Loan payoff (per existing lender payoff letter)
  2. Express fees (if applicable)
  3. Title insurance
  4. Release of existing loan
  5. Outstanding taxes (per tax certificate)
  6. Water and sewer bill (if applicable)
  7. Homeowners association dues and fees (if any)
  8. Prorated taxes for current year
  9. Commissions (per contract)
  10. Real estate closing fee (per contract)

BUYER'S CHARGES

  1. Purchase price
  2. Mortgage title policy
  3. Forms 100 and 8.1
  4. Mineral protection or other endorsements as required by new lender (usually set forth in title commitment)
  5. Recordings
  6. doc Fee ($ . 10 per $ 1000 of sales price)
  7. Tax Certificate
  8. Tax Reserve*
  9. Water and sewer bill (if applicable)
  10. Homeowners association dues and fees (if any)
  11. Premium for hazard insurance (per insurance carrier) Insurance Reserve*
  12. Loan service Funding Fee*
  13. Interest on New Loan*
  14. Survey*
  15. Credit Report*
  16. Appraisal Fee*
  17. Any miscellaneous loan fees as required by the new lender*
  18. Tax Service Fee*
  19. Loan Closing Fee
  20. Real estate closing fee (per contract)

*ALL AMOUNTS DETERMINED BY NEW LENDER

NOTE: All closing costs are negotiable but must be addressed in the sales contract.

BUYERS ALLOWABLE CLOSING COST

FHA

  1. Document Prep: Maximum of $75, additional amount paid by Seller.
  2. Loan Closing Fee: Maximum of $75, additional to Seller.
  3. Real Estate Closing Fee: Buyer can pay any
    amount of this fee if disclosed on contract. The fee
    must be paid outside closing. This fee cannot
    appear on settlement statement and must be
    collected from Buyer.
  4. Lender's Title Policy: Maximum of $75.
  5. Tax Certificate: Not allowable - Seller must pay.
  6. Assignment of Trust Deed: Not allowable - Seller
    must pay.
  7. Underwriting: Not allowable - Seller must pay.
  8. Realty Tax Service - Seller must pay.

Owner's Title Policy - Buyer can pay this charge ONLY ON HUD OWNED PROPERTY.

Interest Credits - No longer allowable on any FHA loans.

VA LOANS

  1. Document Prep: Not allowable - Seller must pay.
  2. Loan Closing Fee: Not allowable - Seller must pay.
  3. Real Estate Closing Fee: Not allowable - Seller must pay.
  4. Lender Title Policy: Allowable Cost - No Limit
  5. Tax Certificate: Allowable Cost to Buyer.
  6. Realty Tax Service Fee: Not allowable - Seller must pay.

CONVENTIONAL

There are currently no restrictions as to what Buyer can pay.

FREQUENTLY REQUESTED ENDORSEMENTS

FORM 130.2: Owner's Extended Coverage (O.E.C.) $30.00 provides:

Mechanic's Lien Protection
Survey Protection
"Gap" Protection
Covenant and Restriction Protection
Plain Language Policy
Inflation Coverage

FORM 100: assures lender that there are no current violations of covenants, conditions and restrictions or encroachments on the properly. $30.00 FORM 100.11: insures against loss from enforce-met of Right to Reverter due to violation of liquor restriction $25.00

FORM 110.30: insures against loss by damage of existing improvements which is the result of the extraction of minerals. $50.00 minimum FORM 110.7: lender coverage on adjustable rate mortgages (non-negative amortization) as to their lien priority. $20.00

FORM 115.2: isnures that requirements are met on a Planned Unit Development (PUD). $50.00 minimum FORM 140.1 (8.1): insures against loss to the lender by reason of lack of priority of the mortgage over state or federal statutory environmental protection. $25.00


REMINDERS:

All funds due at closing must be in the form of a cashier's check, certified check, or wire transfer. All powers of attorney must be approved by the title company prior to the closing. Should a new loan be involved, lender may require review of power of attorney also.

Buyers and Sellers must provide identification at closing. Prior to closing, Sellers need to provide Social Security Number(s) and forwarding address.

This information is based on current customary charges and practices. Many changes are governed by the terms of the contract and are subject to change

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