Re-examining Closing Costs

• August 16th 2010

by UrbanTurf Staff

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The Washington Business Journal reported today that closing costs in DC and Maryland are well below the national average. Given this news, it seemed like a good time to re-examine what is actually included in these costs that remain a mystery to many homebuyers.

Closing costs are essentially fees paid at the settlement table of a home buying transaction. The fees usually include taxes, lender and financing costs as well as attorney and other administrative fees. Closing costs generally range between 2 and 7 percent of the property value, and you must pay these costs before moving into your new home.

Below are a range of typical fees for the DC area, which vary depending on the cost of the home.

Note: Closing costs are not negotiable, but in a home buying transaction, a seller may give a credit to the buyer for closing costs at the settlement table, so that the buyer can wrap their closing costs into their mortgage.

• DC Transfer Tax (1.45 percent of sales price or 1.1 percent of sales price under $400K)
• Settlement Fee ($100-$500)
• Release Preparation Fee ($75-$150)
• Release Recording Fee ($50-$75 per lien)
• Messenger Fees ($50-$100)
• Lender Application Fee ($295)
• Title Search ($200)
• Title Insurance ($1,000-$5,000 depending on the price of the home)
• Appraisal Fees ($300)
• Inspection ($385)
• Survey Fee ($250)
• Credit Report Fee ($55)
• Deferred Transportation Related Facilities Charges ($300-$500)
• Well or Septic Certification Fees ($200-$500)
• Home Buyer’s Warranty ($300-$600)

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/reexamining_closing_costs/2382.