Buying a condo or loft for sale in DTLA, for most people, means taking out a loan and sitting down at the closing table… and paying closing costs.
But what goes into closing costs, and how much will they run you on closing day?
What Goes Into Closing Costs?
Your closing costs include several fees and payments that you only have to take care of once. Some of those fees and payments are:
- Application fee. The application fee is the fee associated with the lender paying someone to review your application.
- Appraisal fee. Your lender will require an appraisal, and you’ll be the one paying for it.
- Attorney’s fees. If you’re using a real estate attorney, the fees may be included in your closing costs.
- Courier fees. The cost for sending official documents by courier or messenger.
- Credit report fee. This is what your lender charges you to pull and review your credit report.
- Daily interest. You’ll pay pro-rated interest that will accrue on your mortgage before your first full month.
- Homeowner’s insurance. Some lenders require upfront homeowner’s insurance payments; they put the money in escrow for when it’s due.
- Lender’s title insurance. This fee pays for title insurance for your lender, so it doesn’t get burned if someone challenges your ownership in the home.
- Loan origination fee. The loan origination fee (sometimes called an underwriting fee) is what your lender charges for administrative costs associated with creating and processing your mortgage.
- Mortgage insurance. If you have to buy PMI, you’ll make your upfront payment at closing.
- Owner’s title insurance. This fee pays for your title insurance in case someone challenges your ownership in the home.
- Pest inspections. The cost of your required pest inspections.
- Points. Prepaid points can reduce your interest rate.
- Property taxes. Sometimes lenders require upfront property tax payments; they put the money in escrow for when it’s due.
- Recording fee. You’ll have to pay the government to record the change of ownership in the home.
- Survey fees. The survey fees cover the assessment of the property.
- Title search. The title search fee is what the title agency charges you to check on the home’s background.
- Transfer taxes. Transfer taxes are a government charge based on how much you borrowed and the home’s purchase price.
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale