Closing Costs

Buying your first home? Don’t let yourself get caught off-guard with closing costs. Just like any other place, Newport Beach real estate entails a long list of out-of-pocket fees, known in the business as closing costs. These are the fees you pay for the services involved in your purchase, from filing your application to getting home insurance. The fees vary in Newport Beach CA, but the amount generally fells between 1% and 4% of the home value.

Needless to say, if you’re not prepared you may find yourself veering off budget before you even get a hand on the papers. NewportOC.com offers a quick look at closing costs and how much you can expect to pay.

Recurring Costs

These are the fees that will be charged on a regular basis after you’ve bought your home. For Newport Beach homes for sale, these usually include:

• Fire insurance: monthly fees that keep you covered in case of fire damage.
  
  
• Flood insurance: ensures that your home is protected against floods and related natural disasters. This is required for most Newport Beach homes, but the rates may vary by area.
  
  
• Property taxes: fees charged annually by Newport Beach CA authorities, based on your home’s estimated value
  
  
• Mutual or private mortgage insurance: provides security for the lender in case you default on the loan due to death, illness or disability
  
  
• Prepaid interest: part of the interest that covers the period between the closing and the first 30-day period of the mortgage

Non-recurring Costs

Newport Beach homes also entail a number of one-time payments, most of which have to do with legal procedures and preparing for transfer. For Newport Beach real estate, some of the most common are:

• Title policies: a form of insurance ensuring that the property title is clean and free of defects. The seller may shoulder majority or all of the costs, depending on the contract.
  
  
• Escrow: part of your monthly payments temporarily held by the lender to pay for taxes, insurance and other fees when they become due.
  
  
• Attorney fees: fees for the preparation of legal documents, usually required for Newport Beach real estate to make sure the papers are properly prepared. The costs may be split between you and your lender.
  
  
• Recording fees: fees charged by government offices for recording the change of ownership. This applies to all Newport Beach CA homes and may be paid by either you or the seller.
  
  
• Transfer tax: a transaction fee paid by either the seller or buyer for passing the title of the property.
  
  
• Survey fee: payment for a survey of the land where the home sits to make sure the dimensions stated are accurate.
  
  
• Appraisal fee: a fee for verifying the sale price to make sure it is equal to or less than the fair market value for Newport Beach real estate.
  
  
• Inspection fee: a fee for having the home checked by licensed professionals for pests, building flaws and other problems