The Washington Business Journal reported today that closing costs in DC and Maryland are well below the national average. Given this news, it seemed like a good time to re-examine what is actually included in these costs that remain a mystery to many homebuyers.
Closing costs are essentially fees paid at the settlement table of a home buying transaction. 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.
Below are a range of typical fees for the DC area, which vary depending on the cost of the home.
Note: 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.
- 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-$5,000 depending on the price of the home)
- 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/reexamining_closing_costs/2382.
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