PEGGY ALLEN, ABR, CRS, GRI 

Integrity, Innovation, Loyalty  

   YOUR REAL ESTATE CONSULTANT

 LICENSED IN IOWA AND ILLINOIS 

RE/MAX BI-STATE - 901 E KIMBERLY ROAD - OLD TOWN MALL  -  DAVENPORT, IOWA 

1-563-359-3898   Home        -       1-563-349-0100   Cell       -       1-563-388-0008   Office       -       1-563-388-0008   Fax  

Common Closing Costs for Buyers 

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for: 

§        Downpayment

§        Loan origination fees

§        Points, or loan discount fees, you pay to receive a lower interest rate

§        Appraisal fee

§        Credit report

§        Private mortgage insurance premium (this varies from loan to loan, so ask your lender)

§        Insurance escrow for homeowners insurance, if being paid as part of the mortgage

§        Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.

§        Deed recording fees

§        Title insurance policy premiums (this varies from state to state; Iowa uses abstracts, so ask your lender)

§        Survey (if requested or required - this is highly recommended for lot line disputes, new construction, or if you are planning to put up a fence and are not sure where the lot line is. Surveys are something many buyers don't think about during a purchase, but it is a good practice to have one completed before you purchase so you know what you are purchasing.)

§        Inspection fees—building inspection, termites, etc. (if requested or required - ask your lender if the lender has any required inspections for your loan program)

§        Notary fees

§        Prorations for your share of costs, such as utility bills and property taxes

§        Your lender may have other fees not listed here, so ask your lender

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6^th of the month. You would owe the gas company for only the days from the 6^th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

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