Customary Fees on Real Estate

Customary fees on a real estate transaction.

Buyer’s Cost

Owner’s Title Insurance Policy*
Based on sales price (see Stewart rate schedule)
Owner’s Extended Coverage

Lender’s Title Insurance Policy/Endorsements

Tax Certificate
(included in bundled rate when applicable)

Closing Fees
Real Estate Closing Fee $250.00*
Loan Closing Fee $320.00

Water and Sewer Transfer Fee/Adjustments*

Recording Fees: 
$11, first page + $5.00 each add’l page
(i.e., conveyance deed and deed of trust)

State Documentary Fee
0.0001% of sales price
(Sales price: $300,000.00=$30.00 fee)

Homeowner’s Association Fees
Transfer/Status Letter/Record Change Fee* Current period dues and possibly future period dues Working Capital/Reserve Deposits

Real Estate Brokerage Fees 
Add’l Commission/Transaction Fee

Loan Related Fees:
Origination Cost
Appraisal Fee
Credit Report
Tax Service Fee
Flood Certificate Fee
Prorated Interest
Mortgage Insurance/VA Funding
First Year’s Homeowners’ Insurance Escrow Reserves

(property taxes, homeowners’ insurance and mortgage insurance)

Seller’s Cost

Owner’s Title Insurance Policy* 
Based on sales price
(see Stewart rate schedule)
Owner’s Extended Coverage

Outstanding Property Taxes 
Prior year’s taxes due
YTD taxes prorated from 01/01 to closing date*

Closing Fees 
Real Estate Closing Fee $250.00*

Water and Sewer Transfer Fee/Adjustments*

Recording Fees: 
$11.00 first page + $5.00 each add’l page
$26.00 release fee + $5.00 each add’l page

Payoff Existing Debts/Liens/Mortgages

Homeowners’ Association Fees
Transfer/Status Letter/Record Change Fee* Current period dues owed

Real Estate Brokerage Fees 
Commission/Add’l Commission/Transaction Fee

Courier/Wire/Cashier’s Check Fees 

*As specified in contract

Note: Veterans Administration Loans (VA loans) will vary based on transaction details

HOA Horrors

Wow, this article has some great points. Condo’s or homes with HOA are not all terrible, but it is something to take into consideration when purchasing.

It highlights Special Assessments,  Rental Issues, Parking Issues, High Fees, Common Areas and more. Very good read and information to consider, but not become terrified of.


To read the article click HERE.

Do you have any HOA horror stories? If so, would love to hear about them.


Denver October Market Stats




Between now and the end of the year, the Denver home market will see fewer monthly

transactions even while the market remains strong and vibrant.

Mortgage interest rates declined between 25 and 50 basis points in September and conventional

and cash financing tops the list of financing options.

Overall, the Denver market has a two month plus supply of homes available for sale at the

current sales rate. Single Family Residential homes have a 2.42 month supply and Condos have

a 1.87 month supply.

The top five (5) counties for homes sold/closed continues to be Denver, Arapahoe, Jefferson,

Douglas, and Adams, ranked from highest number of closings to lowest.

In the month of September, 5,134 new listings came on the market, 5,337 homes went under

contract, and 4,730 homes closed/sold for a closed dollar volume of $1.44 Billion.

At September month end, the largest block of homes available for sale continues to be in the

price range of $200,000 to $299,999 for Single Family and $100,000 to $199,999 for Condo.

For September Year To Date, 56,578 new listings came on the market, 56,063 homes went under

contract, and 42,667 homes closed/sold for a closed dollar volume of $13.0 Billion.

For Single Family homes closed September Year To Date, 20% were in the price range of

$100,000 to $199,999, 35% were in the price range of $200,000 to $299,999, and 31% were in

the price range of $300,000 to $499,999. For Condo homes closed September Year To Date,

66% were in the price range of $0 to $199,999, and 30% were in the price range of $200,000 to


Consumer confidence decreased slightly in September to 79.7 down from 81.5 in August.

Resale home alternatives of new home builders and rental properties continue to participate in

the market.

Distressed properties, while still in the market, are continuing to decrease in relation to the total


In an ever changing market, homebuyers can only remain competitive by doing their homework

and coming to the table prepared. Sellers; keep in mind that buyers are independent, well

informed, and that the first impression of your home should be a lasting impression.

The above representation may or may not reflect all real estate activity in the market.


For some more details and figures for the Month of September click Denver Home Market Update – Sept 2013.

Home Depot Supports Data of Housing “BOOM”

This is a really interesting video to which CNNMoney did a report showing that Home Depot saw increase of “home improvement”.

Check out the video and share some thoughts:!

Steps to buying a home

Step 1: Check Your Credit Report & Score

Before getting a mortgage or any kind of loan, you should always check your credit. According to the law, you’re allowed to receive one free copy of your credit report per year. You can do this by visiting Scores range from approximately 300 to 850; generally, the higher your score, the better loan you’ll qualify for. Don’t forget to check your report for errors. If there are any, dispute them. It may help your credit score


Step 2: Figure out How Much You Can Afford

You can calculate how much you can afford by starting online. There are several online mortgage calculators that will help you calculate an affordable monthly mortgage payment. Don’t forget to factor in money you’ll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.) and the costs of remodeling or furniture. Remember that you don’t always have to put down 20 percent as your parents once did. There are loans available with little to no down payment. An experienced home loan expert can help you understand all your loan options, closing costs and other fees.


Step 3: Find the Right Lender and Real Estate Agent

To find the right mortgage lender It’s best to shop around. Get recommendations from your friends and family and check with the Better Business Bureau. Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.


Once you have the right mortgage lender, make sure you at least get a pre-approvalPre-qualifications are only a guess based on what you tell the lender and are no guarantee, whereas a pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you’re ready to make an offer, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.


Step 4: Look for the Right Home

Make a list of the things you’ll need to have in the house. Ask yourself how many bedrooms and bathrooms you’ll need and get an idea of how much space you desire. How big do you want the kitchen to be? Do you need lots of closets and cabinet space? Do you need a big yard for your kids and/or pets to play in?


Once you’ve made a list of your must-have’s, don’t forget to think about the kind of neighborhood you want, types of schools in the area, the length of your commute to and from work, and the convenience of local shopping. Take into account your safety concerns as well as how good the rate of home appreciation is in the area.


Step 5: Make an Offer on the Home

Now that you’ve found the home you want, you have to make an offer. Most sellers price their homes a bit high, expecting that there will be some haggling involved. A decent place to start is about five percent below the asking price. You can also get a list from your real estate agent to find out how muchcomparable homes have sold for. Once you’ve made your offer, don’t think it’s final. The seller may make a counter-offer to which you can also counter-offer. But you don’t want to go back and forth too much. Somewhere, you have to meet in the middle. Once you’ve agreed on a price, you’ll make an earnest money deposit, which is money that goes in escrow to give the seller a sign of good faith.


Step 6: Get the Right Mortgage for Your Situation

There are many different types of mortgage programs out there, but as a first-time home buyer, you should be aware of the three basics: adjustable ratefixed rate and interest-only.


  • Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time, usually between one to seven years. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don’t plan on living in their home very long and/or are looking for a lower interest rate and payment.
  • Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus a fixed monthly payment) for a longer period of time, usually 15 or 30 years, though they’re available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a long time.
  • Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you’re allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don’t have to if your budget is tight. There is a myth that with interest-only mortgages, you don’t build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.


Remember to ask your mortgage lender or mortgage banker lots of questions about which mortgage is right for you and your situation.


Step 7: Close on Your Home

Make sure you get a home inspection before you close. It will be well-worth the money spent since it ensures the property’s structural soundness and good condition.


Setting the closing date that is convenient to both parties may be tricky, but can certainly be done. Remember that you may have to wait until your rental agreement runs out and the seller may have to wait until they close on their new house.


Be sure you talk to your mortgage banker to understand all the costs that will be involved with the closing so there are no surprises. Closing costs will likely include (but are not limited to) your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.


Step 8: Move In!

You’ve got your mortgage, closed the deal and now it’s time to move in! Whether you use a mover or not is up to you, depending on your financial situation and how much stuff you have to move; perhaps also, whether you have a lot of friends willing to help you move. Either way, you’re done with the home buying process! Just start unpacking and start enjoying your first home! Buying a home for the first time doesn’t have to be a hassle if you’re prepared and you know what to do and when to do it. Choose an experienced home loan lender and a friendly, knowledgeable real estate agent-they are the key to helping you have a smooth home buying experience!

By Diane Tuman

for full article click:


Effects of “shutdown” on Home Loans

Verifications that affect all loans:
•We must verify Social Security numbers on every transaction. The Social Security Administration is closed. I cannot imagine the amount of back logged duties that will be awaiting, so expect delays.
•We must verify Taxable income or W2’s on every transaction. The IRS is closed and responding to verification requests. I cannot imagine the amount of back logged duties that will be awaiting, so expect delays.

Conventional, VA and Jumbo loans:
•Only the above verification will delay these transactions
•Keep in mind the amount of back logged duties that will be awaiting, so expect delays.

FHA loans:
•The verification also will delay these transactions
•Has reduced their workforce from 9,000 to 350.00 employees.
•It is unclear how quickly FHA will be able to issue case numbers. A case number must be issued before an FHA appraisal can be ordered or an FHA loan can close.
•Keep in mind the amount of back logged duties that will be awaiting, so expect delays.

USDA/Rural Housing Loan Programs
•The verification also will delay these transactions
•All USDA employees have been furloughed.
•USDA will not issue Conditional Commitments during the shutdown. A Conditional Commitment is required to fund a USDA loan.
•Keep in mind the amount of back logged duties that will be awaiting, so expect delays.