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So, sometime in the next 6 weeks my wife and I will be signing a contract to have a new home built. The home will be built by a national builder in one of their new home communities.
What are the normal fees and closing costs associated with purchasing a new home outside of the fees associated with the mortgage?
When my wife and I visited the development 6 months ago we received a cost estimate for the model we liked and that estimate included some closing costs and fees that would clearly be for the mortgage loan. I am interested to know what fees are normally charged just for the purchase and would be charged even if it was a "cash" transaction. I know about lot premiums and option costs and do not consider these to be fees or closing costs.
Basically, I'm trying to break all the costs down into logical blocks so I can analyze them properly.
Every state is different, it would be best to ask your realtor, or mortgage lender what fee's are associated with just the closing of the home vs. Closing costs of the mortgage.
In Florida we have doc stamps on the deed, doc stamps on the mortgage, intangible tax, title insurance premium and other title fee's. In a re-sale transaction the seller usually pays the big one's like stamps on the deed and title work/premiums. When buying from a builder they let you pay all those...which all amount to a few % points of the sales price.
Thanks Greg, I'm on a business trip out of the country right now and won't really be able to move forward with talking to a realtor where I want to build or a lender until after Christmas. If it helps, the house will be in South Carolina.
I think they say 3% is fairly standard on a house with a mortgage. The new builders all have preferred lenders they use, and offer a discount. We are going to pay about 2.5% of the mortgaged value to close. I think if you did not have a mortgage, then all you would have to pay is the attorney's fees. I think that was only about .5% or so. Liz
Actually it is all negotiable. In Nevada the "normal" would be half the escrow fee and the transfer tax. On a resale deal the seller generally pays the transfer tax.
So tell him to price it with no fees if you like. If he says he can't he is lying to you.
Banks are generally the main source of buyer fees. I expect total buyers fees to be between 2 and 2 1/2% on a resale.
Varies from builder to builder. I know some try to get you to pay the deed stamps which is normally a seller fee. Most offer to pay your cc and attorney's fees if you use their preferred partners. Expect attorney's fee, home insurance, maybe a survey, appraisal, title insurance. It's not really a cc, but I'd throw in a home inspection as well. BTW, I'm in SC but I imagine most of what I named is national.
If you do take a mortgage, shop the rate with an outside lender and also with the preferred lender. Many times they hit you up with junk fees and you might be able to negotiate better cc.
Who's your builder?
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