Questions from a new buyer

**home buyer** · 01-06-2011, 09:50 AM

Hi, first post here and I want to say I am glad to have found this site. Great place to learn a few things.

I have a couple of questions related to closing costs.

1) What are defined as buyer's closing costs and how much are they relative to the home price?

2) What is the rate of transfer taxes in California?

TIA. Looking forward to learning a few more things.

**Greg** · 01-07-2011, 11:13 AM

Some buyer's closing costs are:

taxes
insurance
appraisal
survey?
home inspection
loan costs

talk to some local lenders. they should be willing to do a good faith estimate which will list the costs involved.

**First Time Home Buyers** · 01-07-2011, 10:10 PM

Well, not sure what things are like in Cali, but here in Minnesota the average buyer's closing costs and prepaids are around 4-5% of the sale price if you're buying between $125-200k.

Obviously it could be higher or lower depending on a lot of factors, but that's somewhat typical.

Thankfully we have a lot of first time buyer programs that give anywhere from $3-10k in down payment and closing assistance, so if the seller cannot cover the closing costs the buyer may have other options.

My advice is to find a lender and realtor you feel comfortable and confident with in the area and ask as many questions as you can. And then when you're done asking questions, ask them "what other questions should I know the answer to?" If they say "nothing", then they're probably not the right guide for you.

You want someone to really hold your hand through the process and not just gloss over important issues.

Good luck!

**DerrickSakai** · 02-08-2011, 12:52 PM

I totally agree with Steve. If you want to be sure about something, you need to ask a reliable source in your neighborhood, in that way you will not be misguided about the process.

In regards with the closing costs for buyers, it usually costs around 3% to 5% of the purchase price and normally it will include recurring and non recurring closing cost such as title policies, recording fees, inspections, courier charges, and lender fee charges.

Amiel Leal
Social Media Representative for
Mr. Derrick Sakai
President
Business Builders California Branch

**Nicole Mockson** · 02-08-2011, 10:53 PM

Keep asking some people who are already old in that kind of transaction so that they will share to you what to do. Always update also the trending business in real estate. It will help you to identify all necessary payments about the interest and many more.

**christinacawlfield** · 02-10-2011, 09:18 PM

hi,

the rate of transfer taxes in california is 0.11%

**rapidbuyer** · 02-10-2011, 11:34 PM

When buying a new home or refinancing your current home, it is critically important that you're aware of all the costs involved in your home loan, or it's going to cost you.

**landontreber** · 02-16-2011, 02:01 PM

I am an agent in Colorado where most counties/cities do not have a transfer tax, so that is a bummer. I would assume that the transfer tax is negotiable based on who the contract states will pay it (as it is here in places that have it)? As stated earlier, get a good faith estimate from lender, and get a buyers agent to guide you with this!

**Mold Testing Guy** · 03-04-2011, 08:24 AM

When in the market for a new home, it is important to have the indoor air quality of the home evaluated. Our home can a have high levels of pollutants. One of the primary contirbutors to this is mold. I would recommend talking to a pro about having a mold test / mold inspection performed prior to purchasing. Best of luck in the house buying process

**lvagent** · 03-07-2011, 08:15 PM

Closing costs are whatever you need to close the transaction other than your down. Most of them are covered above, but additionally if the lender requests that you prepay the home owners association, mello-roos assesments.
Talk to the lender they have a good idea, but as you can see in these threads it varies. Also consider that closing costs could even vary by home.
Good luck