Closing Costs and Procedures

Sample Closings Costs from Attorney, Title and Town, and Bank for $300,000.00 home.
Attorney fee $700.00
Title Search and Review $150.00
Courier Fee $36.00
Recording Fee $190.00
Title Insurance (Owner Policy) $1050.00
Homeowners Insurance (Unless Condo)
Year must be paid ahead and in full
Town or City Taxes
If taxes are due within 60 days of closing
Apportionment Oil or Propane
If there is oil or propane at residence
Apportionment Taxes
Take Yearly Taxes and divide by 365, then Multiply by number of days till taxes are due. For Example: Closing is 12/1/2006 and taxes are $5,250.00. $5,250 / 365 = $14.38 per day. $14.38 x 31 (days until next tax payment) = $445.78
Misc. Bank Fees, not to include buydowns $650.00
Appraisal Fee $350.00
Hazard Insurance Escrow $225.00
Tax Escrow 3 months $1312.50
Total $6,031.00

* Note: The numbers in blue do not change as sales price change. The numbers in red change as sales price, tax rate, oil or propane amounts change.

Closing Procedures

  • Get Preapproved by bank to see how much home you can purchase.
  • Select a Realtor or ask for referral from your bank, attorney, relative, or friends.
  • Identify a property and make an offer to purchase. Usually put down a 1% binder.
  • Once offer to purchase is accepted and signed, then attorneys will draw up contracts.
  • Provide bank with all of you information to start the mortgage approval process.
  • Perform home inspections.
  • Review and sign contracts with your attorney if home inspections revealed no issues. Home inspections will reveal deficiencies, you determine if those deficiencies are great enough to renegotiate or terminate the contracts. Usually 9% more deposit provided to seller at contract signing, however this is negotiable.
  • Work with bank to get them all necessary paperwork and information. This is necessary to ensure that you receive your mortgage commitment before the contractual expiration date of the mortgage contingency clause.
  • Bank will provide Good Faith Estimate. Remember to include taxes and apportionments.
  • Select a homeowners insurance company and pay them for the first year?s premium. Contact your attorney and provide him/her with Agent?s name and telephone number.
  • Approximately two days prior to closing, depending on bank, you will receive the amount that you will need to bring to closing.
  • You sign all bank and legal documentation for closing, provide your remaining balance, and collect the keys and garage door openers. You can ask your attorney if you can sign all the bank documents the night before the closing so you do not have to take the day off of work to close.