Closing Costs

There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract. Many times, your Realtor can negotiate that the seller pay some or even all, of your closing costs. Lenders generally allow the seller to cover 3 to 6% of the costs, which brings me to the topic of recurring closing costs or non-recurring closing costs.

Recurring Closing Costs

Recurring closing costs are just what the name implies--costs that will re-occur even after the loan is closed.  These would be your taxes and homeowners insurance.  They have to be paid yearly, or quarterly, depending on where you live.  Some lenders allow the seller to contribute towards the initial expense of your taxes and insurance in your closing costs and some do not.

Non-Recurring Closing Costs

Non-recurring closing costs are one-time fees that do not occur again during the time you own the home, unless you refinance.  These include  lender or broker fees, title fees, appraisal and credit report fees, among a few others.  Lenders generally allow the seller to contribute towards these fees.

Good Faith Estimate

Buyers will receive a "Good Faith Estimate" of closing costs at the time I pre-qualify you. It is required by law that I give you this at the time you apply for a loan on a specific property, but I give it to you before that so that you have a pretty good idea of how much the closing costs will be. The estimate is based on my past experience and the individual fees may turn out to be a little higher or a little lower then the estimate, but that's why its called a "Good Faith Estimate!"  I will be glad to review it with you and explain each and every cost to you.