What's Hot: Barnes and Noble Will Return to Georgetown in June | The 3,000 Units On The Boards From Trinidad to Gallaudet
Closing Costs Explained
When searching for a new home, most prospective buyers look at a property’s listing price as the total amount of money that they are going to have to shell out. Unfortunately, at settlement there are a handful of other fees that need to be paid.
Closing costs — fees you pay once you get a home loan — have always been a confusing part of the home buying process. 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.
In a down market, the conventional wisdom is that buyers have a fair amount of negotiating room with these fees. Also, before finalizing, buyers should get at least three Good Faith Estimates from mortgage lenders. Below are some typical fees for the DC area.
- 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-$4,000)
- 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 https://dc.urbanturf.com/articles/blog/closing_costs_explained/905.
Most Popular... This Week • Last 30 Days • Ever
Rossdhu Gate is the remaining piece of a 30-room castle built by socialite Daisy Calh... read »
As profits drop around the country, sellers around DC are still realizing hefty retur... read »
A Home Equity Line of Credit, commonly referred to as HELOC, is a borrowing product t... read »
The Gen Z market; ranking food halls around DC; and is this the new king of Queens?... read »
The term "luxury" has been applied broadly in the housing market, but a new report ai... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro