Buyer closing costs
You are ready. You’ve been browsing refrigerators. You’ve been looking at dining room sets. You even have a new espresso machine picked out that would go perfectly in the corner of your new-to-be kitchen. What you haven’t done is actually buy the house yet. Small detail, I know.
Purchasing a home is a huge investment and many people save for a down payment, but forget about closing costs. While it is very common for closing costs to be negotiated in a transaction, there is no guarantee that a seller will agree to pay your costs for you, so it is best to have a plan.
Buyers of a home in the Salem Oregon area typically pay for the following lender closing costs at close of escrow:
- Loan origination fees (1-1.5% of the purchase price is common)
- Credit report fees
- Flood Determination Fees
- Tax Service Fees
- Administration Fees
- Lender’s Title Insurance Policy
And prepaids such as
- Prepaid insurance and prepaid taxes for your escrow account with your lender.
- Prepaid interest on the home loan
In Oregon our contracts call for a 50/50 split between buyers and sellers for escrow fees. The escrow fees a buyer typically pays here are:
- Lender’s Title Insurance
- Mailing Services
- Closing fees
- Document Service Fees
- Wire Transfer Fees (if used)
- Recording Services
Oregon does not have real estate transfer taxes like many other states have so buyers and sellers don’t have to add that aspect into the negotiation of a home sale. So as you start saving for your downpayment, remember you’ll need an additional 3-4% of your expected purchase price to be set aside for fees. You might have to scale down that espresso machine for a Mr. Coffee coffee maker for the time being.