Home Buying Fees Add Up Quickly
Aside from the list price, there are plenty of other fees to consider when you are buying a home. Aside from the mortgage to consider, there is a down payment that can add up to a very hefty chunk of change. Additionally, there are a few large fees you’ll need to consider:
Earnest money. This is paid to your broker or builder as soon as you commit to a house. This signals your interest as a buyer, as well as your commitment.
Broker’s commission. According to the National Association of Realtors, the typical commission is 3 percent for the buying agent and 3 percent for the selling agent.
Home inspection. Homes that may look perfect could have problems beneath the surface, such as a cracked foundation, mold growing between the walls or poison ivy hiding in the bushes. Inspections can run between $200 and $600.
Title fees. One of the quirks of buying a home in Oklahoma is it is one of the few states to require abstracting over the life of the property. Each property must have a record of every single owner it's ever had back to statehood, sometimes even earlier. The costs on abstracting range from $350 to $2,500 or more.
Escrow. Taxes and insurance are a regular part of a homeowner's life. Unfortunately, most home transactions don't happen on the first or last day of the month to make things even. Most closing costs include an escrow cushion, which collects two or three months of taxes and homeowners insurance up front.
Lending fees. The lender typically manages all of the closing costs, and of course they'd like some compensation. These fees can run $400 to $995, and BOK Mortgage charges $660 as a standard fee. But if you're lucky, you might be able to pay less.
Plenty of other fees can occur throughout the process. Appraisal fees to assess the value of the home can run $375 if you have a traditional home but can go up to $425 for FHA or VA loans due to their stricter requirements. Tax services are different than the taxes themselves. Lenders hire third-party organizations to notify the county of the purchase and arrange for the bank to collect property taxes during the life of the loan, Griffith said. This service typically runs $60-$70.
Although consumer credit reports can be requested for free once per year, home loans require different types of credit reports, Griffith said. These reports cost $9-$50.