Home | Newsletter | Advertise
loading...

How Do Closing Costs Work in DC

  • October 28th

by UrbanTurf Staff

✉️ Want to forward this article? Click here.

Today, UrbanTurf takes a closer look at closing costs. 

Closing costs are fees associated with the purchase of a home that are due at the closing of the sales transaction. These costs can vary greatly depending on the home's location, value, and the type of loan being used to finance the purchase.

In DC, closing costs typically range from 2.5%-4% of the total purchase price of the home. The exact amount will depend on several factors, including the purchase price, the type of loan being used, and the services included in the closing process.

There are several types of closing costs that are common when buying a home including:

  1. Loan origination fee -- This fee is charged by the lender for processing the loan application and is usually a percentage of the loan amount.

  2. Appraisal fee -- This fee is charged for having an appraiser assess the value of the home.

  3. Title search and title insurance fees -- This fee is for searching the property's title to ensure there are no liens or other encumbrances on the property, and for obtaining title insurance to protect the buyer in the event of any title issues.

  4. Recordation fee -- This fee covers the cost of recording the transfer of the property's title to the new owner.

  5. Survey fee -- This fee is for having a surveyor create a detailed map of the property, including any structures on the land.

  6. Homeowner's insurance premium -- This is the annual premium for insurance that protects the home against damage and theft.

  7. Property taxes -- This is a prorated amount of property taxes due at closing, based on the number of days left in the tax year.

Closing costs are not negotiable, but in a home buying transaction, a seller may give a credit to the buyer for closing costs at the settlement table, so that the buyer can wrap their closing costs into their mortgage.

See other articles related to: closing costs

This article originally published at https://dc.urbanturf.com/articles/blog/how_do_closing_costs_work_in_dc/20585.

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

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse