Closing Costs in Nevada
How much does it cost to buy a home?
Many home buyers, especially first time home buyers do not have a clear understanding of what it costs to purchase a home. Your down payment amount is based on the type of loan you have and the sales price minus the earnest money deposit. A FHA loan is typically 3.5% of the purchase price, conventional loans range from 5% to 20% down. There are many different type of mortgages/loans and your lender and Realtor can explain which program would be best for your particular situation. We are going to review a few closing costs when you purchase a home in Nevada, these figures are just estimates and you should ask your Realtor and lender for a net sheet to get a more accurate snap shot based on your specific situation.
In addition to the down payment, you will have a couple of upfront fees. These fees include a home inspection and an appraisal. The home inspection is conducted soon after you have a signed contract by all parties and escrow is opened. This needs to be completed during your due diligence period determined in your residential purchase agreement. A home inspection varies in price depending on the inspection company and the square footage of the property. Inspectors may also charge extra for services such as a pool inspection. You will be paying about $275.00-$500.00 for your home inspection and this amount is due to the inspector prior to the inspection. An appraisal is ordered by your lender and does require you to pay upfront. This fee also varies as different lenders use different appraisal companies. You should expect to pay between $400-$600 for your appraisal. Be advised if the property does not appraise and you can not negotiate a solution with the seller you will not get a refund for the appraisal. Make sure your Realtor provides you solid comps to make sure the purchase price is in line with market value. This also applies to the home inspection, both of these costs are non-refundable.
Escrow and title fees will vary based on the company. You will be charged for escrow fees, title insurance, recording fees, document prep fees and possible other company specific fees. Your lender may charge loan origination fees, pre-paid interest, private mortgage insurance ( if putting less than 20% down), points, upfront taxes and possible other miscellaneous expenses. Your lender may require 3 months of home owner association fees to be paid upfront.
Escrow will prorate property taxes, trash and sewer. If your home is in a HOA, they will prorate the monthly fee and you may expect to have transfer fees and other fees associated with the transfer of the property located in a CIC. (common interest community) Some of these fees can be negotiated to have the seller pay. Have your Realtor call the HOA to inquire about the total cost of these charges, they can be pricey. If you choose to purchase a home warranty this fee will also be paid through escrow. Home warranties can range from $400-800 for a year’s coverage. This expense can also be negotiated to be paid by the seller. For a limited time the Sales Team is offering a free basic home warranty to our clients at closing.
This is just a snap shot of the costs involved in purchasing a home in Nevada. As a buyer you do not pay commission, this is an expense of the seller. Many Realtors will try to charge you a transaction fee. This is not a transaction fee or a document holding fee, this is extra commission the agent wants you to pay for their services. The Sales Team never charges the buyer a transaction fee, our service is free to you.
Below we have provided an estimated breakdown for a closing on a property priced at $200,000. The buyer is using an FHA loan putting 3.5% down. As you can see the total costs are about $10,000 minus the earnest money deposit of $3000.00. Taxes and other fees are specific and were not calculated in this example. The appraisal and inspection will be paid upfront therefore not due at closing.
|1. Purchase Price||$200,000|
|Property Value for Taxes: $ 200,000|
|2. Down Payment|
|Additional Down Payment||0|
|Total Down Payment||$7,000|
|3. Loan Amount|
|FHA Upfront MIP||3,378|
|Total Loan Amount||$196,378|
|4. Loan Costs|
|Loan & Lender Costs|
|Lender Origination Fee||1,000|
|6. Title & Escrow|
|7. Closing Costs & Credits|
|Home Owner Warranty||350|
|Total Bring to Close||$10,617|
If you are interested in learning more about closing costs or if you have any specific questions please give us a call at 702-845-5348 or email us at firstname.lastname@example.org.
The Sales Team