The Home Buying Process
Step 6 Of 6
Closing Time
To close the deal on your house, you will meet with a representative from the escrow company who is handling your loan. Once the title is recorded, ownership will transfer to you.
Review the information below to gain an understanding of the fees you (and the seller) will be responsible for paying at closing.
Fees At Closing
Buyer's Fees
Here is a list of fees you should typically expect to pay at closing; there may be more or fewer, you will receive a complete listing of all closing costs specific to your loan:
- Credit Report - done by an independent credit association, to establish your credit rating
- Appraisal - done by an independent appraiser, to establish the value of the house
- Home Inspection - done by an independent home inspector, to provide information about the integrity of the house (typically not required by the lender)
- Title Services - to disclose whether there are any liens and encumbrances and to facilitate and file your closing
- Recording Fees - to record the transfer of property with the appropriate government bodies
- Loan Origination Fee - this is a fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan
Seller's Fees
Here is a list of fees the seller should typically expect to pay:
- Owner's Title Insurance (based on purchase price)
- State of Wisconsin Property Transfer Tax
- Recording fee
- Real estate commissions
As part of your Purchase and Sale Agreement, you can ask the seller to pay some or all of your closing costs and prepaid items. Please be aware that lenders may have limitations on the amount of seller contributions typically 3% to 9%, depending on the loan to value.
Escrow Accounts
Escrow accounts are set up to hold money for insurance and tax payments in reserve, until it is time for them to be paid. Deposits are made to your escrow account by attaching an extra amount every month to your mortgage payment. You may or may not be required to create an escrow account, but can always choose to establish one on your own to make paying your insurance and taxes easy.
