Buying a home is not as simple as negotiating a price with the seller. There are many other costs, including those associated with the loans, appraisals, and insurance. Some are one-time fees, while others recur over the life of the loan and it’s important to understand why.
Depending on where you live, there are customary practices for who pays what.
The SELLER can generally be expected to pay for:
- Loan payoff per existing Lender’s payoff letter
- Record release of existing lien(s)
- Current year real estate tax proration
- Prior year’s property taxes still due
- Homeowners’ association dues and fees Escrow fee
- Commissions per listing agreement
- Tax certificate
- Attorney document prep fees for deed and release(s)
- Homeowner’s transfer fee
- Any other costs as outlined in the real estate contract
The BUYER can generally be expected to pay for:
- Loan policy and endorsements Record warranty deed
- Record deed of trust
- Courier fee
- Escrow fee
- Tax service fee
- Full-year Homeowner’s Insurance Policy
- 2-3 months hazard insurance escrow
- Tax escrow
- Loan origination and/or discount fee
- Appraisal
- Credit report
- Lender document preparation
- Flood certification
- Mortgage insurance premium – MIP or PMI
- Miscellaneous loan fees
- Homeowners’ association dues and fees
- Inspection fees: roofing, geological, property inspection, etc.
- Any other costs as outlined in the real estate contract
This article is part of the Home Buyer Guide.
