| Understanding Closing Costs |
The “closing” is where it all happens. Everything done behind-the scenes leads up to this day. It is time to close the
transaction and transfer ownership of the property from seller to buyer.
Prior to your arrival at the title insurance company you will receive a settlement statement or HUD 1. This shows the
“closing” costs involved in the transaction. The title insurance company will review and explain your settlement statement
or HUD 1 when you arrive for the “closing”.
Both the buyer and seller may pay “closing” costs according to the contract. These costs are an accumulation of separate
charges paid to different entities for the professional services associated with the buying and selling of real estate. This
includes such things as real estate commissions, appraisal fees, loan fees, escrow charges, prorations of payments such
as property taxes and homeowner’s association dues, title insurance premiums, surveys, doc stamps, intangible taxes, etc.
Any funds required to complete the transaction must be in the form of a cashier’s check or bank wire and made payable to
the title insurance company. Many different parties will have fulfilled their responsibilities and be awaiting payment upon
closing. The title insurance company will disburse monies to those parties; therefore any other form of payment may delay
closing.
The amount of “closing” costs will vary depending on the individual circumstances. Title Insurance, however, is mandated
by the state. How much can you expect to pay for title insurance? This point is often misunderstood. Although the title
insurance company usually serves as a meeting ground for the closing of the sale, only a small portion of the total closing
fees are actually for title insurance protection.
The title insurance premium may actually amount to less than one percent of the purchase price of the home, and less than
ten percent of the total closing costs. This one time premium provides coverage for as long as the insured or their heirs
own the property.
For a list of the mandated title insurance rates visit our rate page.
transaction and transfer ownership of the property from seller to buyer.
Prior to your arrival at the title insurance company you will receive a settlement statement or HUD 1. This shows the
“closing” costs involved in the transaction. The title insurance company will review and explain your settlement statement
or HUD 1 when you arrive for the “closing”.
Both the buyer and seller may pay “closing” costs according to the contract. These costs are an accumulation of separate
charges paid to different entities for the professional services associated with the buying and selling of real estate. This
includes such things as real estate commissions, appraisal fees, loan fees, escrow charges, prorations of payments such
as property taxes and homeowner’s association dues, title insurance premiums, surveys, doc stamps, intangible taxes, etc.
Any funds required to complete the transaction must be in the form of a cashier’s check or bank wire and made payable to
the title insurance company. Many different parties will have fulfilled their responsibilities and be awaiting payment upon
closing. The title insurance company will disburse monies to those parties; therefore any other form of payment may delay
closing.
The amount of “closing” costs will vary depending on the individual circumstances. Title Insurance, however, is mandated
by the state. How much can you expect to pay for title insurance? This point is often misunderstood. Although the title
insurance company usually serves as a meeting ground for the closing of the sale, only a small portion of the total closing
fees are actually for title insurance protection.
The title insurance premium may actually amount to less than one percent of the purchase price of the home, and less than
ten percent of the total closing costs. This one time premium provides coverage for as long as the insured or their heirs
own the property.
For a list of the mandated title insurance rates visit our rate page.