Real Estate Closing Costs In North Atlanta

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. In our area of North Atlanta, a good rule of thumb for estimating closing costs is from 2% to 3% of the purchase price.

The title company conducting the closing will tell you the required amount for:

  • Down payment
  • Loan origination
  • Points, or loan discount fees, which you pay to receive a lower interest rate
  • Appraisal
  • Credit report
  • Private mortgage insurance premium
  • Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
  • Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
  • Deed recording
  • Title insurance policy premiums
  • Land survey
  • Notary fees
  • Prorations for your share of costs, such as condo fees and property taxes

A NOTE ABOUT PRORATIONS: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for “services” used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, property taxes are often paid in arrears. But assume you buy the home on the 3rd month of the six-month property tax period. You would owe the County for only the days from the 3rd through the 6th month. The seller would owe for the first three months. The property tax bill would be prorated for the number of days in the period, and then each person would be responsible for the days of his or her ownership. The seller would pay you at closing for their share which you would pay when the bill arrives.

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