Buying a home in North Carolina will save you money
Here’s another good reason to live in North Carolina: our state ranks near the bottom (51 out of 52) in the amount of closing costs paid by buyers in a real estate transaction according to a survey by Bankrate.com. This is good news in a lending climate where closing fees have risen up to 8.8%, according to Bankrate.
The most expensive state in which to buy a home is New York. According to the Corcoran real estate website most of that cost seems to be in higher legal fees and something called a mortgage tax. For properties over $1 million there is also a mansion tax.
Below is Bankrate’s estimate of closing costs in North Carolina for a $200,000 home, derived from Good Faith Estimates from a variety of lenders. Bankrate also has a breakdown of closing costs here for every state. If you need a recommendation for a mortgage broker in the Triangle area, contact me.
| Overview | |
| Average origination fees charged by lender | $1,476 |
| Average title and third-party fees | $1,779 |
| Average total fees | $3,255 |
Itemized fee averages
The fees itemized below, when added up, will not equal the averages listed above. Here’s why: Each bank charges some of the fees listed below, but not all of them. The list below gives the average for each fee if charged by the bank, but each bank will charge only some, not all, of these fees.
| Origination fees charged by the lender | |
| Points | $479 |
| Commitment fee | N/A |
| Application | $343 |
| Document preparation | $50 |
| Broker, originator or lender | $939 |
| Processing | $495 |
| Tax service | $70 |
| Underwriting | $200 |
| Wire transfer | $25 |
| Third-party fees | |
| Appraisal | $360 |
| Attorney, closing or settlement | $468 |
| Credit report | $16 |
| Employment verification | $15 |
| Inspections (pest, etc.) | $125 |
| Flood certification | $8 |
| Postage/courier | $35 |
| Survey | $545 |
| Title search and title insurance | $1,141 |
Read more: 2010 State-by-state closing costs http://www.bankrate.com/finance/mortgages/2010-closing-costs/north-carolina-closing-costs.aspx#ixzz1XLFmQDDr
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