RE/MAX Associates Plus

Merry Dahms, Judi Chapnick, and Mary Walls

want to assist you with all of your home buying or selling needs!

Please call our office at (314) 727-8008

What are closing costs??

The term “closing costs” refers to the multiple fees involved in any real estate transaction.  The lender will have fees, which you will be responsible for paying, and the title company will also have fees for researching the title, preparing paperwork, etc.  A simple rule of thumb to follow is to ask who is responsible for which costs.  The following are some items that are normally considered purchaser’s closing costs:

• Purchaser’s attorney fees, if an attorney is used
• Title Search or Abstract
• Recording Fees
• Lender’s Title Insurance
• Owner’s Title Insurance
• Document preparation
• Survey

The following items are also included in the term “closing costs” and are fees involved in obtaining your loan:

• Discount points
• Origination Fee
• VA funding Fee
• Flood Letter
• Document Preparation Fee
• Pre-Paid Expenses*

*What are “pre-paids”?  This is a description that simply means TAXES AND INSURANCE.  In order to purchase a home, a buyer must have sufficient cash available, in addition to his down payment and closing costs, to pay for approximately 15 months of homeowners insurance and 3 months of taxes. There are few, if any, loan companies that will permit a seller to pay for a purchaser’s pre-paid items.