Closing a Home Cost

• Also known as settlement fees, buyers' average home closing costs range from $2,713 in Missouri to $3,887 in New York state, for a $3,024 national average, according to an annual survey by Bankrate.com. The highest closing costs reported were $11,395 for all fees; the lowest was $1,020. The site lists of average costs by state.
• Exact closing costs depend entirely on geographical location. What is paid by the buyer or seller even varies between counties in the same state. For example, in certain areas buyers pay for title search and insurance, in other places it's paid by the sellers and in some regions the cost is split between the two. (Title search and insurance runs about $450-$600 but can be as low as $100 in one state and $900 in another.)

• There are four types of closing or settlement costs: 1) lender fees related to the mortgage loan; 2) third-party fees such as inspections, flood certification or title search and insurance; 3) government fees such as recording the deed and mortgage taxes; and 4) any escrow and interest accounts set up to cover homeowners insurance, property or real estate taxes, loan interest and private mortgage insurance; Bankrate.com^[1] gives a quick overview.
• For a more detailed approach, the US Federal Reserve Board provides a comprehensive Consumer's Guide to Mortgage Settlement Costs^[2] with descriptions and cost estimates as well as worksheets^[3] to compare these items for two loan offers.

• Depending on the economic market and geographical area, a buyer can ask the seller to pay some or all of the closing costs. FHA and VA loans limit the closing costs paid by the buyer, according to RealEstateABC.com^[4] .
• A lender must give a buyer/borrower a good faith estimate listing itemized closing costs for everything within three days of accepting the loan application. BankRate.com^[5] lists tips to lower your lending-related closing costs.
• A new type of mortgage broker lists all fees, in writing, in advance; get referrals from the Upfront Mortgage Brokers Association^[6] .

1.  www.bankrate.com/brm/news/real-estate/BuyerGuide2004/closing-costs.asp
2.  www.federalreserve.gov/pubs/settlement/default.htm
3.  www.federalreserve.gov/pubs/settlement/worksheet.htm
4.  www.realestateabc.com/homebuying/FHAVA.htm#Non-Allowable%20Fees
5.  www.bankrate.com/finance/exclusives/how-to-negotiate-your-closing-costs-1.aspx
6.  www.upfrontmortgagebrokers.org/about-us/

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