Buyer's Closing Costs and Prepaids

Susie Kay
Published on October 16, 2018

Buyer's Closing Costs and Prepaids

Most potential buyers do not take into consideration the Closing Costs and Prepaids required to purchase a home (or even understand what those are to do so).  In additional to the required down payment (see below), there are Closing Costs and the Prepaids that must be taken in consideration of our pocket costs.  Closing Costs: Closing costs are the many companies that are involved in the transaction: Appraisal, Survey (can use the sellers’ with some exceptions), Tax Certifications, Underwriting, Processing, Wire Fees, Title Fees, Recording Fees, RMCR credit fees, Recording Fees, Closing Attorney, Closing Docs Attorney (who draws your closing docs), etc.    Pre-paids: Typically consist of 1 year of insurance +3 months in reserve in insurance + 3 months of reserve in taxes.  Borrowers will choose their own insurance company (Lenders do not choose it).  Quick Calculation (not exact but will be close)
$100,000 sales price- use (for closing cost and prepaids) $6000.
For each $1000 up or down add or subtract $30 ($101,000 would be $6030; $99,000 would be $5970).
Add the down payment required/ requested
So if a $200,000 Sales Price FHA (3.5% down), then $6000 + $3000 + $7000 Downpayment = $16,000 approximately needed.  This formula is only used as a guide for home buyers. Whenever in doubt, you should always ask your lender for  information and clarification.  If you are looking to sell or purchase real estate in Dallas Fort Worth area please call me at 469-371-2899. I’m honored to be able to assist you!
Susie Kay, Realtor®
Seniors Real Estate Specialist (SRES®)
Certified Home Stager (CHMS)
Accredited Buyer’s Representative (ABR®)
Graduate Realtor® Institute (GRI)
Residential    l    Commercial     l    Investment
Phone: 469-371-2899
Email: [email protected]
Website: www.dfwdreamhomes.net
Ultima Real Estate Dallas – Dallas Fort Worth Luxury Homes
5339 Alpha Rd #120
Dallas, TX 75240
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Buyer's Closing Costs and Prepaids
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