Making Notes

Customary Buyer Fees

What fees do I pay in escrow?

Escrow fees are part of the closing costs when you purchase a home, and they’re paid to the escrow company to set up escrow for your earnest money. These fees cover paperwork — including the recording of the deed — and the exchange of funds. Having escrow in place during the closing process helps keep your earnest money safe.

 

Common fees paid by the buyer include ...

  1. Lender's title insurance policy

  2. On-half of the sub-escrow fee

  3. Buyer's escrow fee and processing

  4. Document preparation

  5. Email loan document fee

  6. Notary fees

  7. Recording charges for all documents in the buyer's name

  8. Tax proration (for any taxes unpaid at the closing)

  9. Homeowner's transfer fee, if specified in contract

  10. All new loan charges

  11. Interest on new loan

  12. Inspection fees (roofing, property, sewer, termite, etc)

  13. Home warranty, if specified in contract

  14. City transfer tax, if specified in contract

  15. Fire insurance premium for first year

  16. Next month's HOA dues, if applicable.

  17. Messenger fees

Some of these fees can vary depending on the contract, so it's important to have a trusted agent by your side when buying a home and negotiating the contract.