Buyer Financial Tools | Tony Hall Associates

Financial Tools

Closing Costs

  • Appraisal Lender requests local, approved appraiser to give opinion of property value. Usually paid at time of loan application.
    $400 - $600
  • Credit Reports Lender orders your credit history from credit reporting agency. Usually paid at time of loan application.
    $55 - $75
  • Loan Origination Fee Lender's fee for processing loan. Paid at closing.                       
    usually 1% of loan amount
  • Discount Points (Optional) One-time charge used to discount the interest rate on a loan. Paid at closing.
    1% of loanamount = 1 point
  • Attorney Fee Fee charged by closing attorney for handling the closing, title search, arranging for title insurance, arranging for survey, etc.
    $675 (cash sale) to $975
  • Title Insurance A one-time premium paid at closing to protect buyer against title defects not found in public records. Required by lender. Covered amount usually equals sales price.
    $2.45 per $1000 of coverage
  • Surveys Identifies lot lines and exact location of house and any other improvements. Required by lender. Closing attorney schedules. Paid at closing.
    $500 - $750
  • Recording Fees charged at County Register of Deeds Office to record deed, deed of trust and other important documents. Paid at closing.
    $50 - $100
  • Property Taxes County/City taxes on real estate are pro-rated between buyer and seller. Seller is responsible for his/her personal property taxes for the year. Paid at closing.
    Tax Value x Tax Rate = Property Taxes
  • Interim Interest Interest collected on the loan from date of closing to the end of month. Paid at closing.
    Will not exceed total monthly payment.
  • Hazard Insurance Homeowners Insurance Policy to cover at least the mortgage amount. First year's premium paid on or before of coverage and closing.
    Varies depending on amount of property
  • Escrow Deposits Funds placed in escrow accounts by lender to pay future. Paid at closing. Amounts determined by lender.
    Minimum 2 taxes/insurance in the months hazard and mortgage insurance. Taxes are determined by time of year.
  • Mortgage Insurance Required on certain loans - usually high loan to value situations. Can be paid in full at closing or amortized with loan.
    Varies depending on loan type and amount.
  • Home Inspection Fee charged by inspector to do home inspection. Paid for at time of inspection.
    $400 - $900
    (depends on size and age of house)
  • Well/Septic Inspection Fees charged by county health department or private companies to inspect wells or septic tanks. Paid at time of inspection.
    $145 (well/water only) - $500
  • Termite Inspection Fees charged by local pest inspectors. Paid at closing
    $85 - $95
  • Radon TestingPaid at time of inspection.                                                
An amortization schedule shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.