North Brookfield Savings Bank’s Quick Guide to Closing Costs

Now that you have saved for your down payment you need to turn your sights to saving for closing costs, an additional expense that will be a part of your mortgage journey. Very often closing costs can be negotiated into the sales price of the home or to be paid by the seller. However, this is not always the case and it is always best to be prepared to cover any costs associated with buying your new home.

According to a recent Zillow survey, closing costs can range roughly from 2-5% of the purchase price of your home. Your North Brookfield Savings Bank Mortgage Lender will be able to give you an estimated amount for your closing costs to allow you to prepare and save.

With the helpful information below you’ll learn all about closing costs so you’re ready and prepared when they come your way.


What are closing costs?

Closing costs are fees associated with your mortgage, resulting from important steps that take place during the home buying process, that are then paid at the closing of a real estate transaction. Closing is the official point in time when the title of the property is transferred from the seller to the buyer. These are the itemized fees you should prepare for:


Appraisal fee: The appraisal fee covers the cost to have a professional appraiser evaluate the home and determine the home’s worth. The cost for appraisal can range from $425 to $625 depending on the home’s size.


Credit report fee: The credit report fee is charged by the lender for them to check your credit score and pull a credit report. The costs is usually $80 or more per borrower on the loan.


Origination fee: When a lender initiates the loan they sometimes will charge an origination fee ranging up to $400.


Application/Processing fee: North Brookfield Savings Bank does not charge an application fee but some lenders charge a fee of several hundred dollars to process the application.


Title search: The title search fee is the fee charged to search the public records of the property you are purchasing to ensure there aren’t any outstanding issues with ownership or liens.


Settlement agent fee: The settlement agent fee is a bundled fee that some lenders will use. This can include the title search fee instead of having it as a separate item, and may also include fees for obtaining the municipal lien certificate from the town, document preparations fee and any attorney’s fees. This typically costs from $850-$950.


Title insurance: Lending institutions require obtaining title insurance in order to protect the lender in case there are any undiscovered issues with the title. The cost of title insurance varies depending on loan amount and purchase price. For a separate additional cost, the homeowner can also purchase title insurance to protect their financial interest in the property.


In addition to these fees listed above, there could be fees for flood certification, tax service, prepaid items, as well as survey and recording fees.

All of this information might seem overwhelming but the really good news is you don’t have to navigate the world of home buying alone. North Brookfield Savings Bank’s Mortgage Center Team has friendly, experienced and knowledgeable lenders ready to help you on your home buying journey. Speak with your Mortgage Lender to find out exactly which fees you should expect as closing costs.

Happy home buying!