What Are Closing Costs?

You've found your dream home, the seller has accepted your offer, your loan has been approved and you're eager to move into your new home. But before you get the key, there's one more step--the closing.

Also called the settlement, the closing is the process of passing ownership of property from seller to buyer. And it can be bewildering. As a buyer, you will sign what seems like endless piles of documents and will have to present a sizeable check for the down payment and various closing costs. It's the fees associated with the closing that many times remains a mystery to many buyers who may simply hand over thousands of dollars without really knowing what they are paying for.

As a responsible buyer, you should be familiar with these costs that are both mortgage-related and government imposed. Although many of the fees may vary by locality, here are some common fees:

Appraisal Fee: This fee pays for the appraisal of the property. You may already have paid this fee at the beginning of your loan application process.

Credit Report Fee: This fee covers the cost of the credit report requested by the lender. This too may already have been paid when you applied for your loan.

Loan Origination Fee: This fee covers the lender's loan-processing costs. The fee is typically one percent of the total mortgage.

Loan Discount: You will pay this one-time charge if you have chosen to pay points to lower your interest rate. Each point you purchase equals one percent of the total loan.

Title Insurance Fees: These fees generally include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees.

PMI Premium: If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this insurance.

Prepaid Interest Fee: This fee covers the interest payment from the date you purchases the home to the date of your first mortgage payment. Generally, if you buy a home early in the month, the prepaid interest fee will be substantially higher than if you buy it towards the end of the month.

Escrow Accounts: In locations where escrow accounts are common, a mortgage lender will usually start an account that holds funds for future annual property taxes and home insurance. At least one year advance plus two months worth of homeowner's insurance premium will be collected. In addition, taxes equal approximately to two months in excess of the number of months that have elapsed in the year are paid at closing. (If six months have passed, eight months of taxes will be collected.)

Recording Fees and transfer taxes: This expense is charged by most states for recording the purchase documents and transferring ownership of the property.

Make sure you consult a real estate professional in your area to find out which fees--and how much--you will be expected to pay during the closing of you prospective home. Keep in mind that you can negotiate these costs with the seller during the offering stage. In some instances, the seller might even agree to pay all of the settlement costs.

517 Properties
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$385,000
Subdivision: Kings Point 2Nd Add
3
Beds
3
Baths
2,104
Sq.Ft.
1975
Year Built
1
Day on Site
721363
MLS
This home is located in the prestigious Kings Point neighborhood with easy access to Panama City, Lynn Haven, Tyndall and the beaches. Home has 3 bedrooms and 3 full baths. A large wood burning brick...
$259,000
Subdivision: Northwoods
3
Beds
2
Baths
1,413
Sq.Ft.
2010
Year Built
1
Day on Site
721553
MLS
3 bedroom 2 bath near the end of this cul-de-sac! Upon entering the home you will notice the mosaic tile in foyer that leads to the hardwood floors in the living room. The living room has 11 ft...
4
Beds
3F11/2
Baths
2,511
Sq.Ft.
2022
Year Built
1
Day on Site
721560
MLS
Introducing new plans along with modern designs to the waterfront community of SweetBay! Harris Doyle Homes, the community's newest builder, presents its 2-story Navarre plan with Classical exterior....
$250,000
Subdivision: [No Recorded Subdiv]
3
Beds
2
Baths
1,762
Sq.Ft.
1965
Year Built
1
Day on Site
721561
MLS
Come see this cute 3-bedroom 2 bath home on a large corner lot near Tyndall Air Force Base. This home was completely remodeled with a beautiful interior just 1 year ago. The garage has been enclosed...
$200,000
Subdivision: Green Hills
3
Beds
2F11/2
Baths
1,455
Sq.Ft.
1945
Year Built
1
Day on Site
721562
MLS
This cozy 3 bedroom home sits on a little over 1/2 an acre of land. The home has been renovated with new luxury vinyl tile flooring, granite countertops in the kitchen, fresh paint, new water heater,...
$425,000
Subdivision: Holiday Beach Unit 13
3
Beds
2
Baths
1,360
Sq.Ft.
1976
Year Built
1
Day on Site
721563
MLS
NEW ROOF AND SHORT-TERM RENTALS ALLOWED! Great 3BR/2BA home on a corner lot just a few blocks from the beach and Grand Lagoon! This home sits on a oversized lot and boasts lots of sensational extras...
3
Beds
2
Baths
1,980
Sq.Ft.
2000
Year Built
1
Day on Site
721564
MLS
Money maker!! Approximately nine acres+-, it has four addresses now with potential for more. There are four power poles, two commercial septics and public water. Well needs repair. The three...
$329,900
Subdivision: Gulf Highlands Beach Resort
2
Beds
2F11/2
Baths
1,188
Sq.Ft.
1991
Year Built
1
Day on Site
721566
MLS
Age, SF, and dimensions approximate. Very well maintained ''Glassback'' unit ready to occupy or for investment. Completely tiled downstairs and bamboo flooring upstairs. Close to heated pool. Complex...
$499,900
Subdivision: Venture Out Travel Trail
2
Beds
2
Baths
1,020
Sq.Ft.
2000
Year Built
1
Day on Site
721572
MLS
Rare opportunity to own in highly sought-after Venture Out. This beautiful 2 bedroom, 2 bath has a great open floor plan and flows beautifully! The kitchen is large and open to the living room....
$395,000
Subdivision: Cedar Park Ph I
4
Beds
2
Baths
1,972
Sq.Ft.
2015
Year Built
1
Day on Site
721575
MLS
Beautiful all brick home in Cedar Park! This 4BR/2BA is ready for a new family to move right in. POOL is ready for fun as soon as the weather warms up! Home was built by Timmins Construction in 2015...
$235,000
Subdivision: Villas At Suncrest
2
Beds
2F11/2
Baths
1,253
Sq.Ft.
2007
Year Built
1
Day on Site
721577
MLS
Tucked in the gated community of Villas at Suncrest in Panama City Beach, this two-story coastal condo is conveniently located featuring a 1 car garage, open main living areas with new wood LVT...
$260,000
Subdivision: Ivy Road Estates
3
Beds
2
Baths
1,569
Sq.Ft.
1982
Year Built
1
Day on Site
721585
MLS
BEAUTIFULLY MAINTAINED AND UPDATED HOME in a desirable neighborhood within a few miles of Tyndall AFB! This home features a beautiful kitchen with granite counters, tiled backsplash, stainless steel...

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Phone(850) 774-3670

Email[email protected]

Address Virga Realty, Inc.
2524 Pelican Bay Ct
Panama City Beach, FL 32408

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