Home Sale Closing Costs: No surprises, please!

Sometimes surprises are a good thing. Birthday parties, anniversaries, engagements, Christmas – all great occasions for a surprise. Buying a home? Not so much.

Finding out what additional costs might pop-up at closing is a great way to avoid any nasty, last-minute surprises. The list of various costs you see below will vary depending on the area you’re in, legalities, regulations, and is not an exclusive or exhaustive list by any means, but will give you an idea of costs you can expect. Contact your Realtor for full details of what closing costs you can expect for your transaction.

Downpayment: This might be one of the more obvious costs, but it’s a big one. A downpayment on your new home can be as little as 5% to as much as 25% depending on where you are and the lender, as well as your employment, income and credit history.

Mortgage Processing Fee: Usually covers lender appraisal and application fees; may also include fees for lender’s insurance if required.

Home Inspection: Although normally completed before closing, these are an added fee to budget for if you decide to proceed with one.

Legal Fees & Disbursements: Legal costs will vary, and include title searches, registration of the mortgage, obtaining title insurance, deed registration, and anything else that may be required to complete your transaction. Plus, you’ll be billed for office disbursements like photocopies, postage, faxes, and courier charges as applicable.

Survey: Your lender or lawyer may require that you have a survey completed either on the property you’re selling or buying. A survey generally is not transferrable and belongs to the person who ordered and paid for it (you). Previously-supplied surveys cannot be relied on for accuracy, which is why you may be asked for a new one to be completed.

To get a more accurate picture of what your closing costs will be, talk to your lender, Sales Representative/Broker and lawyer, and be sure to budget accordingly.