So you are buying a home or gathering information about the costs of home ownership? Below is a list of the most common mortgage closing costs for a home purchase in Lawrence, KS.
Remember, these are rough estimates for a transaction in Lawrence, KS/Douglas County area. As always, for a detailed estimate and quote, use our quick quote tool or complete a secure application and I will provide you with a detailed estimate based on your specific transaction and your geographic area. First Assured Mortgage is licensed in Kansas.
As the owner/broker of First Assured Mortgage in Lawrence, KS I am committed to providing my customers the very best mortgage rates available from the very best lenders in the market. You can confidently apply for your mortgage knowing I scan the market to make sure I have the very best mortgage lenders available to my customers.
Prior to closing or at time of inspection
- Mechanical Inspection or Whole Home Inspection – This inspection is very common and covers the mechanical and structural systems of the home. Cost around $350-$400. What is a home inspection?
- Termite Inspection – Determines if there is current or previous termite damage or infestation. Cost approx $75. What does a termite inspector look for?
- Roof Inspection – Life of roof or accessing any damage to the roof. Cost approx $0.
Lender Fees – Buyers will pay some combination of the below fees to their lender/originator. Make sure you get the best overall deal on your mortgage using my guide to getting the best rate on your mortgage.
- Origination Fee – This is a fee charged by y0ur loan officer that goes to them or their company. This fee is similar to the discount fee. $Varies
- Discount Fee – A charge to reduce the interest rate. Some consider this just another origination fee. $Varies
- Underwriting Fee – This is a charge for your lender to offset the cost to review your documentation and ensure mortgage product guidelines are met. $0-$1500
- Interest Rate – Don’t forget your loan officer or their company may be getting premium pricing from the lender for charging you a higher rate. Make sure you understand the relationship between rate and fees. i.e. if the rate goes up the fees should go down or if the rate goes down fees go up. $Varies
- Lender Credit – You may get a lender credit because of the rate you choose. If you choose a higher rate because you aren’t going to stay in the home for a long time, you can reduce other fees. If there is excess premium after paying your loan officer or their company it can go to you. $Varies
Third Party Fees – Title Company
- Title Company Closing Fee – Fee for performing preparing and witnessing the signing of the closing paperwork. $350-$450
- E Recording Fee – Fee to record paperwork electronically passed on to buyer.$5-$15
- Title Insurance for Buyer – Fee for insurance of the title so buyer is protected from any legal claims to property prior to transfer of deed. $0 (usually paid by seller, refer to contract)
- Title Insurance for Lender – Insures the lender against any legal claims to the property prior to transaction. $175 (reduced policy due to issuance of buyers policy simultaneously)
Third Party Fees – Other
- Appraisal – Third party fee for estimating the value of the home you are purchasing. Your lender often time wants to know the value of the collateral they are accepting. Not all transactions require an appraisal. This report is ordered by your loan officer or their processor, but, due to current mortgage regulations, your loan officer or their company should not choose the appraiser specifically or communicate with them directly. You will recieve a copy of the report within 3 days of the receipt of it by your lender/loan officer. Cost approx $465-$1500
- Credit Report – Third party report compiling credit info from all three credit bureaus. $50-$100. If corrections needed the price goes up from there.
- Verifications – Third parties may require payments to verify employment, mortgage, loan, or deposit info. approx $50 per verification.
Third Party Fees – Government
- Mortgage Recording – Your mortgage is recorded as a legal record at the county courthouse. Cost varies by number of pages in the mortgage. Cost approx $185-$280
- Deed Recording – Records the transfer of ownership of the real estate. Cost approx $28
Pre Paid Items – Items paid in advance
- Interest – You will pay interest from the closing date till the end of the month. Typically your first mortgage payment doesn’t start the next month, so, they collect this at closing. For instance, if you close the 15th of January, you would pay 16 days of interest to the lender at closing and your first payment would start in March. In some cases if your closing is near the 1st of the month, you can start your payment the first of the following month. In this case you would receive a credit for the number of days since the 1st of the month. For instance, you close on the fifth of January and your first payment starts February 1st, you would receive a 5 day interest credit.
- Homeowners Insurance – Homeowners premiums are paid in advance, so, your premium for the first year is due at closing. The title company will collect it and distribute it to your insurance company.
Escrow Account – Starting your escrow account so your lender can take over paying your homeowners insurance and taxes after closing
- Homeowners Insurance – You will start off paying the first year premium to your insurance company and place 2-3 months extra into your escrow account. Cost $varies
- Property Taxes – You will place the number of months of property taxes into your escrow account needed to make sure there are 6 months plus reserves available to pay the bill when it comes due. The number varies by your closing date. Cost $varies
- Aggregate Adjustment – A small accounting adjustment is given back to you.
For Conventional Buyers
- If your loan amount is more than 80% of the value of the house or purchase price (whichever is less) you will have PMI
- You may have upfront premium for PMI based on your loan amount and value of the property you are purchasing.
- You may have monthly premium for PMI based on your loan amount and value of the property you are purchasing.
For FHA Buyers – FHA Buyers are subject to Both Upfront and Annual MIP
- Upfront MIP – Insures FHA lender from losses resulting from defaults.
- Annual MIP – Insures FHA lender from losses resulting from defaults.
For VA Buyers
- Termite inspection must be paid for by seller.
- VA funding fee based on type of service and use of benefit. VA funding fee table. This fee is used to administer the VA Home Loan program, it lowers the cost to the US taxpayer.
- Seller Paid Closing Costs – If negotiated into contract.
- Seller Tax Proration – A credit for taxes that were incurred by the seller when they owned the home but haven’t been billed yet. Once deed is recorded buyer becomes responsible for tax bill. Since there is no bill yet, seller credits the amount to buyer.
- HOA Dues – If seller paid ahead on HOA dues, you will reimburse them for the amount from the day you purchase the property.
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