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Buyer's Costs

House Keys

Release Date: 07/25/2025

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  🔑 Typical Buyer’s Costs in a Real Estate Transaction       1. Loan-Related Costs     Origination fee: Charged by the lender for processing the loan (0.5%–1% of loan amount). Credit report fee: $25–$50. Appraisal fee: $300–$600 (paid to confirm the home’s market value). Underwriting fee: Charged by the lender for evaluating the loan application. Discount points (optional): Paid to reduce your mortgage interest rate.       2. Title and Escrow Fees     Escrow fee: Charged by the escrow company for handling funds...

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Typical Buyer’s Costs in a Real Estate Transaction

 

 

 

1.

Loan-Related Costs

 

 

  • Origination fee: Charged by the lender for processing the loan (0.5%–1% of loan amount).

  • Credit report fee: $25–$50.

  • Appraisal fee: $300–$600 (paid to confirm the home’s market value).

  • Underwriting fee: Charged by the lender for evaluating the loan application.

  • Discount points (optional): Paid to reduce your mortgage interest rate.

 

 

 

2.

Title and Escrow Fees

 

 

  • Escrow fee: Charged by the escrow company for handling funds and documents.

  • Title insurance (lender’s policy): Protects the lender from title issues.

  • Recording fees: Paid to the county for recording the deed and mortgage.

 

 

 

3.

Home-Related Expenses

 

 

  • Home inspection: $250–$500 (optional but strongly recommended).

  • Pest inspection: Often required by lenders (especially VA loans).

  • Survey fee (in some states): Verifies property boundaries.

 

 

 

4.

Prepaid Costs (Impounds)

 

 

  • Homeowners insurance premium (first year paid upfront).

  • Property taxes: A portion may need to be prepaid at closing.

  • Prepaid interest: Covers the interest from closing day to the first mortgage payment.

  • Escrow/reserve accounts: Lender may require reserves for taxes and insurance.

 

 

 

5.

Other Potential Costs

 

 

  • HOA transfer fees: If buying in a homeowners association.

  • Attorney fees (in states where attorneys handle closings).

  • Courier or wire transfer fees.

 

 

 

 

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How Much Are Buyer’s Costs?

 

 

  • Typically range 2%–5% of the home’s purchase price.

  • For a $300,000 home, expect $6,000 to $15,000 in buyer’s closing costs.

 

 

 

 

🤝 Can These Costs Be Negotiated?

 

 

Yes. Buyers can:

 

  • Negotiate with the seller to pay some or all closing costs.

  • Shop lenders for better rates and lower fees.

  • Apply for buyer assistance programs in certain states or localities.

 

 

House Keys is brought to you by 

Mountain Retreat Realty Experts

https://mtnretreatrealty.com