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Buying You Las Vegas Home • Las Vegas Closing Cost Terms | ||||||||||
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Las Vegas Closing Costs | ||||||||||
| Prior to close of escrow, your escrow agent will provide you with a settlement statement that will show complete charges. Appraisal Fee The seller normally pays for the appraisal on a resale, the buyer pays for a new home appraisal. Cost can range from $300 to $600 and up. Assumption Fee This is a lender fee that is charged to assume a seller's existing loan. When allowed, it varies from loan to loan and can be requested from the seller's lender. Brokerage Fee This is the fee that a seller contracts to pay their listing agent. Listing/Selling agents and their companies have formulas for splitting this fee. Credit Report Most likely you paid for this at the time you applied for your loan. The cost varies but is usually anywhere from $25 to $75, more if you're from out of state. Down Payment Call lender for particulars... mortgages start at 3.5% down. If 20% of the sales price, or higher, is put down on a home, no mortgage insurance is normally charged. The earnest money that you deposited with your offer to purchase is credited towards your down payment/closing costs in escrow. Escrow Fee This is a split fee - the buyer and seller usually each pay half. It pays for escrow company services and will vary slightly, depending on the company. Form 1099 IRS requires escrow completes a 1099 form reporting the sale and purchase of the property. Homeowner Association and Transfer Fees If home is in a homeowner association, the management company charges up to $200 for transfer fees to set up account in buyer's name and buyer is usually required to pay 4 months dues in advance at close of escrow. This varies from HOA to HOA. Home Warranty Seller may choose to offer a 1 year home warranty, usually starting at around $350 for a basic plan. Buyer may pay for plan if seller will not. Insurance Impounds You choose your own home insurance company but if you put less than 20% down on your loan, the lender will require an impound account to handle the payments and normally asks for 14 months is paid at close of escrow. Interest Prorate Interest is calculated on a 30 day month, for instance, if you close on the first day of the month, you will be charged 30 days interest. If you close on the last day of the month, you'll be charged interest for only one day. Legal Fees Some escrow companies have an attorney who may, under certain circumstances, examine the documents, usually the buyer or sellers request. Loan Discount Points 1 point equals 1% of the loan amount - a lender fee. The buyer usually pays for the points, however this may be negotiated between the buyer and seller but the buyer usually pays for them. Loan Origination Fee This is a lender fee is usually 1% of the loan amount. Some lenders will waive the fee, however, usually the interest rate will be a fraction of a percent higher. Check with your lender. Nevada Transfer Tax $5.10 per $1,000 of the sales price in Clark County, paid to the State of Nevada on transfer of title. May be paid by buyer or seller, determined on Purchase Agreemen. Varies from County to County PMI or MIP If your downpayment is less than 20%, the lender usually requires mortgage insurance. This protects the lender against loss due to foreclosure. The insurance is paid monthly and also at closing, the lender usually charging two months in advance. If and when you can establish that you have a 20% equity in your home, you may apply to have this fee canceled. It can save you money if you remember to apply. Prepayment Penalty This is a mortgage payoff fee to the mortgage holder. There is no prepayment penalty on FHA and VA loans but the penalty on some other mortgages can be quite large. Be sure to check with your lender when you apply for your loan to be certain there is no prepayment penalty on your loan. Reconveyance Fee At close of escrow, a fee paid by the seller to reconvey title cleared of lien of existing mortgage Recording Fee This is the cost of recording your new deed at the Clark County recorder's office. It is normally split between the buyer and seller, usually around $100, depending on how many pages are recorded. Set-Up and Collection Fees A charge for setting up a collection account if the seller will be carrying a first or second trust deed. It is usually around $100 set up fee, and around $10 per month and is usually split between buyer and seller Tax Impounds If purchase downpayment is less than 20%, the lender will require an impound account to collect for, and pay property taxes. Escrow will prorate property taxes to the day of closing. Normally three to six months taxes are collected for the impound account. Tax Service Fee A one-time lender fee charged for setting up tax payments - usually under $100. Title Insurance Title companies charge for insuring clear title to your property. The seller pays for a policy to protect the buyer, and the buyer purchases a policy to protect the lender. Some Money Saving Tips... • Shop for a mortgage that does not charge points • Ask sellers to pay some or all closing costs • Arrange to close near the end of the month • Buyer normally chooses the escrow company in the "Offer to Purchase". Compare prices • Be certain that you get a loan with no prepayment penalty | ||||||||||
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