Closing Costs

Closing Costs are something people have a tendency not to consider and they are not small amounts by any means. Below is a listing of some of the most common costs and fees.

Banking Fee’s:

  • Origination Fee – This is your application fee to the lender to start the lending process.
  • Appraisal Fee – Lenders hire an appraiser to make sure the value is there for the money you are borrowing.
  • Administration Fee – To process your loan and create all the proper documents.

Attorney Fee’s

  •  Title Search/Insurance – Attorney’s do this to protect you to make sure that there aren’t any lien’s or faults on the property so you have a deed that is free and clear.
  • Settlement/Notary Fee’s – Cost to record the deed and notarize the proper documents.


  • Transfer Tax – Is the largest closing cost which is normally equal to 1% of the total selling price of the property.
  • Property and School Taxes – Current Taxes must be satisfied at closing which are usually prorated between the buyer and seller with the cost varying depending on the time of year and when tax bills are due. Some lenders require that you have a year’s worth of taxes escrowed beyond the taxes due at closing.

Typical closing cost for a $250,000 home could range from $9,000-$10,000.

Homeowner Association Fee’s (HOA)

  •  This is only a cost if you are building or buying in a development that has an Association. This fee is for the maintenance of all the common areas in the development. Typically the association fee will vary per development depending on what common areas are maintained by the HOA. Examples would be Parks (playground equipment, basketball court, tennis courts, etc.), Lawn Maintenance, Road Maintenance, Garbage collection etc.

Click the links below to read parts 1 through 3.

Part 1 – Site Development
Part 2 – Permits
Part 3 – Utilities[/vc_column_text][/vc_column][/vc_row]