Typical Closing Cost on a Boise Home | Boise Home Closing Cost | Title Costs

Typical Closing Cost on a Boise Home

You’ll most likely be responsible for several various fees and costs that you and the seller will be responsible for paying at closing. Your lender will provide you a good-faith estimate (a document that, by law, must be given to you detailing estimates of all your costs.) The title company will provide you with the final (as opposed to estimated amounts) for the following items.

Closing Cost Items

Home inspection (If you will be paying this at closing. Some inspectors require you to pay for this at the time of the inspection)
Credit report
Appraisal
Down payment
Loan origination
Private mortgage insurance premium
Loan discount fees, or points, which you may choose to pay to in order to obtain a lower interest rate
Property tax escrow, if you will be paying this as part of your mortgage monthly payment.*
Escrow amount for homeowner’s insurance, if you will be paying this as part of your monthly mortgage payment.*

A note about escrow accounts:

Loan service companies collect money from you monthly (in addition to your loan payment) and keep a separate escrow account, then pay your insurance and taxes for you. Some loan programs require you to include these fees in your monthly payment while others allow you to choose to pay these items on your own. For first-time home buyers, it is advisable to have these included in your mortgage payment so you don’t have to worry about budgeting for a tax bill twice a year or an insurance premium once or twice a year.

Title insurance policy premiums
Deed recording
Notary fees
Land survey (if necessary)
Any proration for the new buyer’s share of costs like property taxes and utility bills.

Additional information about proration

Because costs such as utility bills are often paid monthly or annually, you may receive a bill for services that were used by the sellers before you moved in. Proration is the means by which the sellers pay you back or by which you pay the sellers for bills they have paid already. Here’s an example: The gas company sends a bill monthly for the gas that was used during the prior month. You buy the house on the 7^thof the month. The seller would be responsible for the first 6 days of the month, and you would be responsible for the remainder of the month. The title company will call the gas company to determine what is due at the time of closing. The sellers will pay this amount to the title company and the title company will credit the amount to the buyers. Then, when the bill comes to the new owners (the buyers) at the end of the month, they will pay the entire amount, knowing they have been paid for the first 6 days.