Category Archives: Selling a Home

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Brevard County Real Estate

Closing Terms Meanings

The costs and terms associated with a home purchase closing can be somewhat daunting to the first time home buyer or those who have not closed on many properties.

Closing Term meanings
The idea here is to help those who are selling or purchasing real estate to be more familiar with the terms and costs associated.

Some of the terminology associated with a real estate closing:

  • Title insurance
    Title insurance is a written document on file that assures the new buyer that title to the home being purchased is free and clear to be legally transferred. Should a problem arise with the title, the title insurer pay any legal damages. A title insurance policy may either protect the home buyer, mortgage company or both.
  • Inspections
    The inspection(s) on a home purchase is meant to protect the home buyer from any hidden or otherwise damages to the home prior to closing. The home buyer typically pays for this service. The most common inspection are:

WDO (Wood destroying organisms) This is not just about termites. Wood destroying organisms includes termites, but also covers mold, mildew, wet-rot and dry rot.

4 Point A 4 Point inspection is a thorough inspection of the roof, electrical wiring and outlets, plumbing and appliances of the home.

Wind Mitigation A wind mitigation inspection verifies that the home is safe and prepared for any natural weather event that could potentially cause damage due to high winds. Roof, decking, roof to truss attachments, windows and wind coverings are some of the areas where the inspector will focus his attention on.
A fee paid to a certified person who searches the dwelling for termites and other destructive creatures

  • Appraisal The appraisal is typically paid for by the home buyer and is ordered from the lending company. If a home is a cash deal, the appraisal is not required. The appraiser will complete an assessment on the value of the home so the lender can determine if the funds being delivered to the borrower are equitable to the value of the property.
  • Survey The survey is another service typically paid for by the home buyer and gives the home buyer an accurate measurement of the boundaries and property lines of the property being purchased.
  • Origination Fee A fee that is charged to the home buyer to create a mortgage loan. It is typically a predetermined percentage of the mortgage amount.
  • Credit report The credit report is a documented report of a persons financial history. It assists the lender in determining the risk of whether a borrower is more likely or not to default on their mortgage. The higher a person’s credit rating, the more likely they are to get a lower interest rate.
  • Title services The title search is a fee that covers administrative costs provided by the title company or escrow agent. It also covers costs associated with the title search and title insurance.
  • Document preparation This is a fee that the lender charges to a borrower for the documents signed by the home buyer at the closing.
  • Attorney, closing or settlement fee The amount charged by an attorney for witnessing and approving the mortgage loan transaction.
  • Discount points The borrower pays monies up front to the lender in exchange for the lender to reduce the interest rate. One “point” is equal to 1% of the loan amount.
  • Flood certification Some lenders will access a fee that covers the cost to determine whether or not the home your are purchasing falls within a flood zone. If it does, the flood insurance will be required to continue to process and approve your home loan.
  • Postal/courier If you are closing remotely, then this fee covers the cost to mail your closing paperwork for signatures.
  • Wire transfer fee This fee is charged to transfer funds at closing.

Any time during the process of looking for a home to purchase or any time during the process of the purchase, always ask your Realtor for clarification of anything you are not clear on or understand.

If you do not have a Realtor, feel free to call or email us and we will be more than glad to answer any questions you may have.

Brevard County Realty

321-759-3857


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Brevard County Florida Real Estate

What Do I Owe at Closing?

There are so many aspects of purchasing or selling a home, it is understandable why it can be somewhat overwhelming to the person selling or buying sometimes.   Besides all of the contract and legal aspects of purchasing, the financial aspect can be the most stressful. One of the most common questions I get asked as a Realtor, is, “What do I owe at closing?”

“How much is it going to cost me at the closing table to sell my house?” “How much is it going to cost me at the closing table to purchase this house?”

While each individual purchase or sale is as unique as the other, there are too many variables that create a closing document for a seller or a buyer to go into here at one time.

What I can provide you however, is a picture of what the customary costs of selling or buying a home are. You can then discuss with your Realtor or Lender about the specific costs for each line item.

Customary Seller’s Expenses

  • Title search and closing fee (approximately $500)
  • Owner’s title insurance policy, if applicable, as per the sales contract. (varies with sales price of home.  i.e. $250,000 sales price would be approximately $1,500)
  • Process satisfaction of mortgage for existing mortgage. (pay off what you still owe on the home you are selling.)
  • Municipal lien search – (approximately $75)
  • Brokerage/Transaction Coordinator fee $300 – $500)
  • Doc Stamps on deed. (documentary stamps) – $0.70 per $100 based on sales price. (In Miami-Dade County, it is $.60 per $100)
  • Home warranty, if applicable per sales contract (approximately $500)
  • 1st or 2nd mortgage payoff
  • Property taxes – prorated for time occupied calendar year.  (varies)
  • Real estate commissions for selling agent and buyer’s agent. (typically 6% of sales price – 3% each side)

Customary Buyer’s Expenses

  • Title Search and closing fee (approximately $250)
  • Owner’s title search insurance policy, if applicable, as per the sales contract
  • Lender title insurance policy
  • Endorsements to the lender’s policy, if applicable
  • Recording fee for the warranty deed (approximately $75.00)
  • Property taxes – prorated for time occupied calendar year.  (varies)
  • Recording fee for the mortgage (approximately $75.00)
  • Documentary stamps on the mortgage – ($.35 per $100 based on the mortgage amount)
  • Intangible tax on the mortgage ($.002 X the mortgage amount)
  • Assignment of mortgage (if applicable) (varies)
  • Inspection of the subject property – typically includes a 4point inspection, wind mitigation inspection and WDO inspection (wood destroying organisms) (approximately $300 – $500 depending on the size of the home)
  • Appraisal of the subject property (approximately $350 – $500)
  • Survey of the subject property (approximately $300)
  • Condominium approval fees and dues, if applicable
  • Homeowner’s association dues and transfer fee, if applicable
  • Homeowner’s insurance and possibly flood insurance
  • Lender’s fees which could include, but not limited to: loan origination fee, credit report fee, tax service fee, underwriting fee, document preparation fee, prepaid interest, PMI and establishment of an escrow account.  ($1,500 – $3,000)  (Varies from lender to lender)

As I mentioned above, no two sales or purchase transactions are identical. It is always best to refer to your lender and or your Realtor when it comes to questions about your closing. It is imperative that you are well aware and prepared for all of the costs involved in the transferring of title on a property transaction.

If you are thinking about selling your home or in the market to purchase a new home, our team of Real Estate Professionals would love the opportunity to talk with you.