Bellenot & Boufford, LLC
Real Estate – Buyer Closing Costs
What Are The Buyer’s Costs For A Residential Real Estate Closing In Connecticut?
This article will highlight some of the more common costs needed to close a real estate purchase in Connecticut. No two closings are identical, so there can be other expenses. Consulting with a real estate attorney or local realtor can help you identify any other potential costs.
Points: Check with your lender
Application Fee: Check with your lender, but most are about $200
Document Preparation Fee: Check with your lender, but most are about $500-$600
Appraisal Fee: About $500-$600, but Check with your lender
Credit Report: Check with your lender, but usually $42 per borrower
Flood Certification: About $12
Tax Service Fee: About $79
Recording Fees: $172 or more depending on how many documents need to be recorded and how many pages are in each document
Recording Services: $65
Real Estate Attorney Fees: Usually $750 – $1,250
Title Search: About $450
Title Insurance: Ranges between a few hundred dollars and thousands of dollars, depending on the size of the mortgage. Banks require that a borrower purchase a Mortgagee policy. The buyer can also purchase an owner’s policy at a discounted rate, but this is not mandatory. You should discuss this with your closing attorney.
Homeowners Insurance: Lenders usually require that a borrower prepay the first year’s insurance. If your insurance will be paid by the lender after the first year, most will require an escrow of 2- or 3-months premiums.
Mortgage Insurance: Usually assessed if the down payment for the purchase is less than 20%
Property Taxes: If your taxes will be paid by the lender, you will have to escrow enough money to assure the bank can pay the tax on its next due date. Most also require an additional 2 or 3 months in escrow.
Prepaid Interest: The daily interest amount multiplied by the number of days between closing and the last day for the closing month.
Some additional fees might be:
- Courier / Overnight fees
- Document Preparation Fees
- Home inspection: Usually $500 – $1,250 depending on the extent of the inspection.
There are also prorated adjustments for things such as taxes and association fees. If the taxes and fees are paid in advance, the buyer will give the seller a credit equal to the per diem (daily) cost multiplied by the number of days between closing and the next due date for the tax or fees. The buyer will also give the seller a credit for the balance of oil or propane in the tank near the date of closing.