Who Pays Closing Costs

Who Pays Closing Costs

The information below is courtesy of Equity Title of Nevada and is to be used as a general example of “customary” costs. Please refer to your loan documents for information specific to your transaction.

Closing Terms

Below are terms associated as part of the closing of a home in Nevada.

• Appraisal Fee – This is a one-time fee that pays for an appraisal. The appraisal is made by an independent fee appraiser.
• Credit Report Fee – A one-time fee that covers the cost of the credit report.
• Document Preparation Fee – There may be a separate fee that covers the preparation of the final legal papers.
• Loan Discount – A one-time fee used to adjust the yield on the loan to what market conditions demand. It is often called “points.”
• Loan Origination Fee – The lender’s administrative costs in processing the loan are covered by this fee.
• Miscellaneous Title Charges – The title company may charge fees for a title search, title examination, document preparation, recording fees, a settlement or closing fee, and notary fees.
• PMI Premium – You might be required to pay an upfront fee for mortgage insurance, depending on the amount of your down payment. Lenders may also require monies be placed into a reserve account held by them.
• Prepaid Interest – Depending on the time of month your loan closes, this per diem charge may vary from a full month’s interest to that of a few days. If your loan closes at the end of the month, you will have to pay interest only for a day or so.
• Taxes and Hazard Insurance – You may be required to reimburse the seller for property taxes, depending on the month in which you close. You will also need to pay a year’s hazard insurance premium up front. Also, you might be required to put a certain amount for taxes and insurance into a special reserve account held by the lender.

Cash Transaction Closing Costs

New Conventional Loan

New FHA / VA Loan

Who Pays Closing Costs