Buying Your Home - Escrow & Closing Costs
Questions? Call Roland Bean: 315-730-3733
How can I save on closing costs?
Studies show that the closing
costs, which can average 2 to 3 percent of a total home purchase price, are
often more costly than many buyers expect. But there are some ways to save:
Negotiate with the seller to pay all or part of the closing costs. The lender
must agree to this as well as the seller. This is called seller's concessions.
* Get a no-point loan. The
trade-off is a higher interest rate on the loan and many of these loans have
prepayment penalties. But buyers who are short on cash and can qualify for a
higher interest rate may find a no-point loan will significantly cut their
* Get a no-fee loan. Usually, though, these fees are wrapped
into a higher interest rate though it will save you on the amount of cash you
* Shop around for the
best loan deal. Each direct lender and each mortgage brokerage has their own fee
structure. Call around before submitting your final loan
application.Approximate Closing Costs-Buyer-Cayuga County
1. Taxes are generally escrowed, best to check with your lender. They would include, city, county and school taxes.
2. Attorney fees: Varies at the discretion of the Attorney.
3. Appraisal fee and Credit Check: Varies with Lender: Approximately $250.
4. Bank Attorney fees: Varies with Lender.
5. Recording Fees can vary with each County. Approximately $5.00 per page plus $40.
6. Deed recording, check with each county, $5.00 per page plus $40.
7. Real Property Transfer Report (Form EA-5217): $125 or $250.
8. N. Y. State Mortgage Tax for single and double family dwelling: One percent(1%) mortgage tax over $10,000, deduct $25. Three quarters percent (3/4%) on Mortgages under $10,000.
9. Insurance- Fire and Liability:Typically $5.00 per thousand of sale price. First year premium is prepaid at closing.
10. Possible Points in Lending Institution: One Point equals one percent (1%). Veterans Mortgage by Law, the Buyer cannot pay more than one point of the Purchase Price.
Generally your Lender and your Attorney will figure the closing costs for you.
What are closing
Closing costs are the fees for services, taxes or special interest
charges that surround the purchase of a home. They include upfront loan points,
title insurance, escrow or closing day charges, document fees, prepaid interest
and property taxes. Unless, these charges are rolled into the loan, they must be
paid when the home is closed. All New York State lending facilities are required to give the borrower a good faith estimate of all closing costs.
Why do I need a title report?
As much as you as a
buyer may want to believe that the home you have found is perfect, a clear title
report ensures there are no liens placed against the prior owners or any
documents that will restrict your use of the property. It is best to hire an attorney or speak to your lender to see if you as a buyer can use the bank's attorney.
Some Attorneys our office has worked with:
Patrick Carbonaro: 315-252-2352
David Contiguglia: 315-252-7515
Boyle and Anderson: 315-253-0326
Charles Marangola: 315-497-1190
Donald Armstrong: 607-756-7501
Richard Zwirn: 315-497-0363