Closing Costs

Not only will you have to bring your down payment to the closing but there are also other fees that are required for a buyer, these are called closing costs. Closing costs are processing fees that you pay your lender in exchange for them creating your loan. 


These fees are dependent on what kind of loan you are using, where you live, and the lender themselves. Closing costs are charges that sometimes sneak up on buyers if they aren’t warned by a REALTOR®. The Amanda Hill Team recommends using their trusted list of lenders so that they can know who you will be working with and what to expect. 


Below are some important fees you might need to know when it comes to closing costs. 

Appraisal Fee

This fee pays for the appraisal of the property. This fee may already have been paid at the start of your application process but still one to know. 

Credit Report Fee

This fee cover the cost of the credit report requested by the lender. This is another fee that may have been paid when you applied for your loan.

Loan Origination Fee

This fee is a payment to a lender for their services of handling the processing associated with taking out a loan

Loan Discount

This is a one time charge if you have chosen the option to pay point to lower your interest rate. 

Title Insurance Fees

These fees include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees. 

PMI Premium

If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This protects the lender against loss due to foreclosure. Once a new owner has 20% equity in their home they can normally apply to eliminate this insurance.

Prepaid Interest Fee

This fee covers the interest payment from the date you purchase the home to the date of your first mortgage payment. Usually, if you buy a home early in the month the prepaid interest fee will be substantially higher than if you buy it towards the end of the month. 

Escrow Accounts

A mortgage lender will usually start an account that holds funds for future annual property taxes and home insurance. At least one year advance plus two months worth of homeowner’s insurance premium will be collected. In addition, taxes equal approximately to two months in excess of the number of months that have elapsed in the year are paid at closing. 

Recording Fees, Transfer Taxes and HOA

This fee is charged by Mesa County for recording the purchase documents and transferring ownership of the property. The HOA fee is prorated for the time the seller is in the home, the buyer will be responsible for any HOA transfer fees to their names if applicable. 

Title Closing Fee

This fee is split between the buyer and seller for the title company to actually perform the closing service. 

It is always important to consult your local lender about the total of these costs and which fees apply to you and your situation. It is also important to understand that some of these fees can be negotiated with the seller in your offer. Regardless, knowing that these fees are also included in your home buying process is crucial.