Closing Costs for Lake Condos
We know that Missouri has very low taxes, but did you know it also has the lowest closing costs in the nation? For the second year in a row, New York is the state with the highest mortgage-related fees in Bankrate.com's annual closing costs comparison survey. Home buyers in Missouri pay the lowest closing costs, according to this study. The dollar amount of closing costs depends upon the loan amount, interest rate, closing date and type of loan. However, a list of closing costs for purchasing a Condo may include the following:
Taxes - These are paid in arrears, and will be pro rated depending on what time of year you close. If taxes are $720 per year, and you close June 30th, you will be credited for $360, (180 days x $2 per day) and you will pay the whole tax bill at the end of the year you purchase.
Assessments - This is paid in advance, and will be proprated by the quarter. You wont have a assessment payment for a whole quarter after moving in.
Origination Fee - $200 to $300 on average to Lender
Appraisal Fee – $375 to $400 Required by the lender
Credit Report – Under $50 Required by the lender
Employment Verification - Not always required, $15
Interim Interest - At closing, the borrower will pay interest for the period between closing day and the first day of the next month. If the loan closes on the 20th, the borrower will pay 10 or 11 days of interest. If it closes on the 1st, the borrower would pay no interim interest.
Escrow Reserves – Required by the lender
Termite Inspection - Required by lender
Tax Service Fee – Required by the lender
Structural/ Mechanical Inspection - Some loans require these inspections. Many buyers choose to have these inspections done, although they may not be required by the lender. Condo inspections typically cost around $290.
Flood Zone Determination – One of our least favorite topics in the world! No condos at the Lake are in any danger of flooding, but flood determination maps are so inaccurate, this is sometimes a problem. I have a list from FEMA, that clarifies this issue.
Overnight Parcel Fees - The expense of over-nighting documents for loan payoffs, and many times the buyer will close “By Mail” and will not be present for the closing.
First Year of Home Owner's Insurance - Not always required.
Recording Fees - Money paid to the county recorder to enter the Deed of Trust into the public record. This can include Government recording fees.
Title Fees - A title company provides title insurance to the borrower and the bank. Title insurance provides the lender and the buyer (if you purchase owner's coverage) with coverage for losses resulting from specific title defects listed in the policy. Lenders require "lender's coverage" to protect their investment and it only protects the lender. Owner's coverage is optional and provides separate coverage for the borrower.
I know it sounds pretty scary, but Missouri is a very friendly State for purchasing a condominium. There are no tax stamps, no condo move-in fees, no condo association transfer fees, no credit checks by the associations, and you shouldn’t need an attorney fee for a typical closing