Closing costs are a necessary part of a real estate transaction. But these fees differ depending on which side of the table you sit. Buyers have a greater number of closing costs compared to the seller, however some of these fees are often negotiated in the real estate deal. (For instance, a seller may agree to contribute a certain amount towards the buyer’s closing costs.) Read on for a breakdown on the fees appearing on the buyer’s side of the Closing Disclosure (CD) form.

 Understanding Buyer’s Closing Costs

According to Realtor.com, closing costs are usually between 2% and 7% of the amount of the home. These costs also vary based on the type of mortgage you choose or for which you qualify.

Buyer’s closing costs typically include the following items:

• Loan Application: Amount varies per lender, and covers the administrative cost of processing your loan application.
• Home Appraisal: Applies to every real estate transaction involving a lender, and provides an objective estimate of the fair market value of the home.
• Land Survey: Optional – only ordered upon request by a buyer or agent. Describes the boundaries and other pertinent details of the property.
• Credit Report Review: Charged by the lender to ensure good credit status.
• Flood Determination: Performed by the lender to determine if the property falls within a flood zone.
• Flood Elevation Certificate: May be required if it’s determined that the property is, in fact, located within a flood zone.
• Attorney Fee: Applies only if you hire an attorney versus a settlement company to handle your closing.
• Homeowner’s Insurance: Applies to every transaction with a lender.
• Flood Insurance: Often required if the property is located within a high risk flood zone.
• HOA Assessment: Charged if the property is part of a homeowners’ association, and is typically prorated.
• Prepaid Interest (Loan Discount Points): The amount of interest that accrues between your closing date and the first loan payment. Loan discount points reduce the interest rate on your mortgage. 
• Private Mortgage Insurance (PMI): Typically required if the down payment is less than 20 percent. Certain mortgage products require PMI for the life of the loan.
• Lender’s Title Insurance: Protects the lender’s interest if title problems arise surrounding the property.
• Origination Fee: Charged by the lender, and covers the cost of creating the home loan.
• Courier Fee: Amount charged by some lenders for document delivery throughout the real estate transaction.
• Recording Fee: Varies by city or county, and charged for public recording of the real estate sale.
• Transfer Taxes: Charged by the city, state or county to cover the cost of transferring title on a property.
• Underwriting Fees: Amount charged by the lender to evaluate in depth your ability to repay the home loan for which you’ve applied.
• Title Company Closing Fee: Amount charged by the title company to conduct the real estate transaction.

*Some types of mortgages may include fees specific to those products. Closing fees and their amounts may vary per state and/or municipality.

Have questions on how closing costs are determined, or about the settlement process in general? We’re happy to help! Call Linear Title & Escrow at (757) 340-0340 today.

Thrilled. Ecstatic. Elated. These are all emotions associated with buying a new home, whether it’s your first time or you’re a seasoned buying pro. Yet with each home buying experience, there is something to be gleaned. Some pearl of wisdom you didn’t know or overlooked before, that can make you a smarter homeowner, future seller or home buyer if and when you purchase another home. What will you take with you from your recent real estate purchase? How can you get the most out of your home buying experience?

• Did you use an agent? Real estate agents have much to offer in the way of knowledge about the housing market and in finding your dream property. Take advantage of having an agent in your corner for future purchases, if you skipped it this time around.
• Assess your initial property search. What worked? Was it as productive as possible? Did you maximize your time by looking in the right location and appropriate price range?
• Did you get pre-approved prior to looking for a new home? Mortgage pre-approval certainly offers some advantages. Read our previous post on the benefits of being pre-approved here.
• How was the road to closing? Did you experience an easy loan application process, or are there ways to improve the management of documentation in future real estate transactions? Keeping meticulous financial records and statements can help streamline this process for the future, in a big way.
• Make note of what worked. If you did your homework, stayed within your budget and got an awesome deal on your home, pat yourself on the back! Take careful note of what factors or actions worked best for you, so you can apply them to future home buying experiences.
• Make note of what didn’t work. On the same token, identifying things that you would do differently the next-go-round also is prudent. Avoiding past mistakes can go along way in making any future home buying experiences easier.

If you’ve just purchased a home, congratulations! You’ve reached a milestone, whether it’s your first home or your third. At Linear Title & Escrow, we focus on making your closing as smooth, efficient and streamlined as possible. Contact us today at 757.340.0340 with your closing questions.

Curb appeal. A term taken mainstream largely by a slew of HGTV home improvement shows over the past decade or so. That’s not to say that property owners previously failed to consider the importance of outward appearances when it comes to owning a home. Perhaps the market-driven economy since the turn of the century has engendered more of a need for our homes to look appealing from…well, from the curb.

Whether looking to spruce up the exterior portions of your property for your own contentment or wanting to ensure your home is in tiptop shape for its debut on the MLS, improving curb appeal doesn’t have to be too difficult, or expensive. We’ve put together a list of five easy ways to enhance the exterior appeal of your home – that won’t break your back, or the bank.

5 Simple Ways to Do A Lot With a Little

1. Update the Entryway. Often the focal point of a home, the front door should be welcoming and inviting. Reframing the door, replacing the door handle and flanking your entrance with sturdy plants can go a long way in adding charm and appeal to your home.

2. Add a fresh coat of paint. Nothing gives a home a facelift like a new coat of paint. Add accent colors to your front door, garage door, shutters and even window trim to completely transform the look of your home.

3. Rejuvenate with landscaping. Remove dead, unhealthy shrubs, trees and flowers, and replace with fresh, vibrant plants and trees that add color, warmth and interest to your property. Plan out how to fill your space first, though, so your landscaping doesn’t appear haphazard, unorganized or as an afterthought.

4. Enhance appearance with landscape lighting. Your property may look great in the daylight, but what about once the sun goes down? Strategically placed landscape and up lighting can do wonders for giving your home a regal appearance.

5. Pressure wash, and seal the driveway and walkway. Dirt, grime, mold and a whole host of other unpleasant materials tend to collect on driveways, walkways and porches. Pressure washing away this collection leaves behind a fresh, like-new surface that can really complement the home. Sealing once completely dried helps protect these passageways into the home, keeping them cleaner in the long run and giving them an eye-pleasing sheen that lasts.

You don’t have to invest much to refresh and rejuvenate your property’s appearance. Be creative, be inspired and be ready to move when that offer comes in.

Home renovations are commonly regarded as a way to render a property more appealing to buyers, and potentially even up the asking price. But what type of (realistic) return on investment can you expect? Due diligence with respect to research in your particular market will reveal the “true value” of popular home renovations, and help you determine if such projects are worth the effort.

Risk vs. Reward in Home Renovations

For the past 30 years, Remodeling Magazine has generated annual Cost vs. Value Reports, comparing ROI for a number of remodeling projects. A quick glance below gives insight into those most popular and the renovations rewarding the highest returns, as determined by Remodeling Magazine’s Cost vs. Value Report for 2017. (Keep in mind, the information presented here is a national average. A bathroom remodel in Boston, Massachusetts, will cost considerably more than one in Tulsa, Oklahoma, for example.)

Project                                                             Cost/Resale Value                  ROI

Popular Home Renovations

 Bathroom Remodel                                        $18,546/$12,024                    64.8%

Kitchen Remodel (minor)                              $20,830/$16,699                   80.2%

Basement Remodel                                          $71,115/$49,768                    70.0%

Wood Deck (addition)                                      $10,707/$7,652                     71.5%

Roof Replacement                                            $20,664/$14,214                   68.8%

Backyard Patio                                                   $51,985/$28,546                    54.9%

Renovations With the Highest Returns (Above 75.0%)

Fiberglass Attic Insulation                             $1,343/$1,446                       107.7%

Entry Door Replacement (steel)                   $1,413/$1,282                         90.7%

Manufactured Stone Veneer                          $7,851/$7,019                        89.4%

Kitchen Remodel (minor)                               $20,830/$16,699                  80.2% 

Entry Door Replacement (fiberglass)         $3,276/$2,550                        77.8%

Siding Replacement                                         $14,518/$11,093                     76.4%

Garage Door Replacement                              $1,749/$1,345                        76.9%

Though updating or remodeling may be crucial to selling a home, it’s always prudent to know what type of return you can expect on your investment. Maximize your ROI by committing to quality, and having a good idea of what potential buyers are looking for in their dream home.