What closing costs should you expect?
There are certain ordinary expenses associated with closing the sale of a house. These costs are usually split between the buyer and seller, as spelled out in the sales contract. Many are customary, but there are nuances to each, so you'll want a real estate expert in the DC area to help show you through your process. Typically, your closing costs in the DC, MD and VA area as a buyer come to approx. 3%. Those costs are broken down below. To be clear, the 3% is in addition to any down payment such as a 5%, 10% or 20% downpayment. In some cases, we'll be able to get some or all of the 3% covered by the seller in the form of a credit.
Costs pertaining to your loan to be paid at closing
- Points (optional)
- Appraisal Fee
- Credit Report
- Interest Payment
- Escrow Account
Taxes commonly paid at closing
- Property Taxes -some, not all.
- Transfer Taxes and Recording Fees
Insurance fees due at closing
- Homeowners Insurance
- Flood Insurance
- Private Mortgage Insurance (PMI) (optional)
- Title Insurance
Sellers: As we get through the details of your transaction, not only will I work to get the very best sales price, but I'll also be making the transaction as smooth and easy as possible for you. And once we've come to an agreement, I'll give you a detailed list of the closing costs so you are aware of exactly where your money is going.
Buyers: If you are buying a property you'll get a "Good Faith Estimate" (GFE) of closing costs within three days of submitting your loan application to the lender. The estimate is based on the loan officer's past experiences and is required to be within a reasonable range so you're not surprised when you show up at the closing table. I'll be happy to look at the GFE with you, answering your questions and highlighting any estimates that seem questionable.