Many wonder what the closing costs are for purchasing a home in Contra Costa County and Alameda County.
This is a really good question, being that they can be up to 2-5% of your purchase price. It's good to think about these things so you don't get sticker shock a few days before you are to close escrow, and you're at risk of loosing your deposit.
Here's the run down:
- Origination Fees: This is the fee that lenders charge for processing the application and underwriting it. This fee can be up to 1% of your mortgage.
- Service Charges: This includes things like your appraisal, credit report, flood determination and certificate, taxes, pest inspection, title insurance and survey fees. Did you know you can pay around $850 for the inspections and about $500 for the appraisal? Gosh, and then it's going to cost around $2k for title insurance too.
- Documentary Transfer Taxes and Recording Fees: Most times, sellers around here pay for the transfer tax and this cost is $0.55 per $500. Some areas require a City Transfer Tax too. For those cities, The City Transfer Tax is split between the buyer and the seller. That cost is about $7.00 per $1,000.
- Escrow Items: These items include the homeowner's insurance, bi-yearly property taxes (plus supplements, like Mello Roos), and primary mortgage insurance (if your first loan is more than 80% of the appraised value). If you're purchasing in an Home Owners Association, you'll get to pay for those on a (most of the time) monthly basis.
- Realtor Costs: GOOD NEWS!! You generally don't have to pay us, as the seller traditionally helps you out there.
Interesting stuff, yeah? Be sure you contact us early in your home buying process? We want to make sure you're ready for home ownership. Don't forget, we're ready when you are!!