Fallbrook and Bonsall Real Estate Closing Costs

Common Disbursements

Loan Origination Fee

Usually termed “points”, this is a variable fee depending on the interest rate.  You may not pay points if you wish to pay a higher rate or reduce your rate by paying points.  You will do well to work the numbers to determine the most advantageous loan.

% of the loan amount

Credit Report 

$15.00-30.00

Tax Service Fee- fee that is charged the buyer to verify the property taxes are paid annually.

30-50.00

Underwriting Fee-lender fees to review you loan file and determine approval.

375.00-450

Processing Fee-this fee is usually charged by a mortgage broker to prepare the entire loan package for submission to a lender. 

150.00-350.00

Buyer’s Title Policy-this is a premium charge to insure your lender for your loan amount.  The seller will pay the higher of the title insurance premium on your purchase transaction.  The seller will insure you that they are passing to you a home with “clear title”.  

Dependent on loan amount e.g. 250,000-loan premium will be approx. $470.00.

Flood Certificate-determines that the property is not in a flood zone and if it is, flood insurance will be required.

10.00-18.00

Escrow Fee-this is a third party fee charged by company that will facilitate the transfer of title and disbursements of monies between seller and buyer

  Usually based on the price of home;e.g. usually $150-200 base plus $2.00 per thousand of sales price

Appraisal Fee- charged by a California licensed person to evaluate the value of the home for buyer and lender. 

 Usually 350.00, however dependent on size of home

Courier/Express Mail-transfer of documents between you, escrow and the lender

50.00

You pay home Inspection Fee- this fee to an independent third party hired by you, the buyer, to determine the soundness of the home you are buying.

Estimate 250.00

Termite Inspection- this fee is usually paid by the seller to determine if the property is free of termites or other wood destroying organisms.  Your lender usually requires a certificate of completion before a loan is funded.

50.00 and up

Home Warranty-usually paid by seller if your agent negotiates in the purchase contract.  This protects you, the buyer, against major repairs during the first year of home ownership.  You may renew this policy.

325.00-450.00 depending on coverage.

Notary Fees - fees charged by a notary public to witness your signature(s)

10.00 per signature

Other Fees - If your down payment is less than 20% of the purchase price of the property, the lender may require PMI (private mortgage insurance).  Many lenders have programs that do not require PMI.  If you wish to avoid PMI, you can structure your purchase to utilize two loans that will close simultaneously.

Property Tax impounds, fire/hazard insurance impounds may be required by the lender dependent on downpayment.  Some lenders also require impounds if your credit scores are below their thresholds.