What Are My Closing Costs?

Mortgage Origination Fees (Buyers)

This sounds crazy, but you actually have to pay the lender a fee to begin the mortgage process. In most cases this fee isn’t too high.

Credit Report Fees (Buyers)

Although this fee is sometimes waved by the lender, some lenders do charge a fee of about $50 to pull your credit.

Discount Points (Buyers)

Are points you purchase in an effort to lower the interest rate. Its like making an upfront payment for lower future monthly payments by lowering your interest rate.

Appraisal Fees (Buyers)

An appraisal is done by the lending institution to confirm the value of the property.  Your lender typically charges the buyer for the valuation.

Title Insurance (Buyers)

Title insurance is insurance that protects you in the event that there’s an issue with the title of your home after the closing.

Private Mortgage Insurance (PMI) (Buyers)

If you have a conventional mortgage loan with a down payment of less than 20%, most lenders require you to pay for private mortgage insurance.

Real Estate Agent Fees (Sellers)

Although many real estate agencies charge 2.5% commission and request a 2.5% commission be paid out to the buying agency (total of 5%),  New Door Realty will only charge a 1% fee without sacrificing the quality of service.  We leave it up to the sellers to decide what commission they would like to offer the buying agency.

Conveyance Tax: (Sellers)

Conveyance tax is a tax imposed on the transfer of real property at the state, county, or municipal level. This tax is generally 1% of the sale price in CT.

Attorney fees: (Buyers and Sellers)

Fee for an attorney to represent you.

Other Closing Costs (Buyers and Sellers)

Depending on the situation of the sale, there could be other costs associated.  Your lender and/or attorney will disclose the applicable charges.