Loan Fees, Transfer Taxes and More

December 28, 2011

chicago home valuesThe closing – it’s what you’ve done all this house hunting, inspection, loan work and more to get to. It’s a tense time with victory in the form of a new home so close you can taste it. It’s the last time you want to be surprised and hit with additional costs, but it’s also when everything adds up. Ilyce Glink has a great guide to what you should expect to find as closing costs on the Equifax Finance Blog titled, “

Buying A Home: Estimated Closing Costs.” Some you shouldn’t be surprised to see are:

Flood certification fee: this is charged by the lender to make sure the plot where your home is located isn’t in a federally designated flood zone. If it is, you will most likely be required to purchase flood insurance for the lender to protect their investment in addition to personal flood insurance.

Loan processing fee: this fee compensates the lender for the preparing and evaluating your mortgage loan, and is kind of a super fee in that it can include lender’s attorney’s fees, document preparation costs, notary fees and similar charges. Expect it to range from $100 to $750.

Transfer tax: these are government fees to officially mark transfer of ownership in government, from town to state, and are usually based on the price of the house. For example, in Chicago the buyer picks up the city transfer tax, which adds up quickly at $3.75 per $500 of sales. Sometimes you may luck out with either no charge or a flat fee. This is a good one to look up or ask about ahead of time since it varies so heavily upon where your purchase is located.

All of these and many more add up to anywhere between 3 and 9 percent of the home’s final closing cost, which can be a lot to consider when it comes to such a hefty investment as a home. To see more examples of what is included in closing costs, be sure to read the rest of the article and more tips about buying a home on the

Equifax Finance Blog.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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