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News You Can Use - December

Wednesday, December 7, 2016   /   by Tina Redding

News You Can Use - December

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You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:



  • Down payment

  • Loan origination

  • Points, or loan discount fees, which you pay to receive a lower interest rate

  • Home inspection

  • Appraisal

  • Credit report

  • Private mortgage insurance premium

  • Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage

  • Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.

  • Deed recording

  • Title insurance policy premiums

  • Land survey

  • Notary fees

  • Prorations for your share of costs, such as utility bills and property taxes


A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.



Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.


Copyright 2008. All rights reserved.

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Based on information submitted to the MLS GRID as of February 16, 2025 12 AM. All data is obtained from various sources and may not have been verified by broker of MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. Some listings have been excluded from this website.
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