Understanding the distribution of closing costs is essential for buyers to anticipate expenses and negotiate effectively.While both buyers and sellers incur closing costs, buyers typically shoulder a larger portion, covering various fees associated with securing a mortgage and finalizing the property purchase.
Buyers can expect to pay closing costs such as loan origination fees, appraisal fees, title insurance, and recording fees, among others. These costs generally range from 2% to 5% of the purchase price. It's important to note that many closing costs are negotiable; buyers can discuss with sellers the possibility of covering certain expenses or offering concessions to reduce the buyer's financial burden.
When it comes to closing costs, the BUYER is generally responsible for the following expenses:
Title Insurance Premiums
(ALTA Loan Policy)
Escrow Fees
(50% of the total fee)
Document Preparation Costs
(if applicable)
Notary Fees
Messenger, Overnight, or Courier Fees
(if used)
Tax Proration
(based on the acquisition date)
Homeowner Association Fees
(as outlined in the contract)
All New Loan Charges
(excluding those the lender requires the seller to pay)
Assumption or Record Change Fees
for taking over an existing loan (per the contract)
Recording Fees
for official document filings
Beneficiary Statement Fees
for assuming an existing loan (according to the contract)
Inspection Fees
(e.g., roofing, property, geological inspections)
First-Year Fire Insurance Premium
Buyer’s Share of the Sub-Escrow Fee
Escrow Loan Tie-In Fee
These are typical costs that the buyer will cover, though the exact fees may vary depending on the specifics of the sale agreement.
I have closed many real transactions throughout my career and have had my fair share of experience with all sorts of escrow companies. I will never use any other escrow officer except for Eric. He mirrors my work ethic by being honest, transparent, and on top of each transaction like a hawk.
Arbi B.
We would love the opportunity to connect with you and discuss how Lakeside Escrow can assist with your escrow needs and help ensure a smooth and efficient escrow process.