What Are Closing Costs associated with buying in Mammoth Lakes?

You've found your Mammoth dream home! The seller has accepted your offer, your loan has been approved and you're eager to move into your new property. But before you get the key, there's one more step-closing escrow. 

The closing is the process of changing ownership of property from seller to buyer. As a buyer, you will sign many documents and will have to present a check for various closing costs. It's the fees associated with the closing that many times remains a mystery to many buyers who may not know what they are really paying for.

As a responsible buyer, you should be familiar with these costs that are both mortgage-related and government imposed. Although many of the fees may vary by locality, here are some common fees:

Appraisal Fee: This fee pays for the appraisal of the property if you are getting a loan to purchase. This will determine the current market value of the property. 

Inspection fee: If you want to get a property inspection, you will pay the inspection fee to the inspector. This is typically about $400 and will provide you with information on any issues with the property. 

Credit Report Fee: This fee covers the cost of a credit report requested by the lender to get your loan. 

Loan Origination Fee: This fee covers the lender's loan-processing costs. The fee is typically one percent of the total mortgage but should be discussed with your lender.

Loan Discount: You will pay this one-time charge if you have chosen to pay points to lower your interest rate. Each point you purchase equals one percent of the total loan.

Title Insurance Fees: These fees generally include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees associated with your purchase.

PMI Premium: If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this cost.

Recording Fees and transfer taxes: This is charged by most states for recording the purchase documents and transferring ownership of the home.

Commissions: As a buyer, you are not required to pay any realtor commissions unless agreed upon with the seller. 

If you have any questions about this process, please feel free to contact me any time!

Jamie Kelly-Resort Property Realty