Buyer's Costs in Real Estate Transactions
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Questions and Answers

What is the purchase price of the property at 123 Dream Street?

  • $510,000.00
  • $5,100.00
  • $1,649.40
  • $662,500.00 (correct)
  • Which expense is categorized as a non-recurring cost?

  • Rent
  • Security Deposit
  • Wire Transfer Fee (correct)
  • Prorated Taxes
  • What is the amount credited as a seller credit?

  • $1,649.40
  • $5,100.00 (correct)
  • $10,200.00
  • $0.00
  • What is the total amount for the lender's loan fee points?

    <p>$10,200.00 (D)</p> Signup and view all the answers

    How much is the escrow fee listed in the estimated buyer's costs?

    <p>$500.00 (D)</p> Signup and view all the answers

    What is the purpose of the appraisal fee in the context of the buyer's costs?

    <p>To evaluate the property’s value (C)</p> Signup and view all the answers

    Which fee is associated with the ALTA Policy?

    <p>$615.25 (D)</p> Signup and view all the answers

    What is the amount for the endorsement fee for the ARM Rider?

    <p>$75.00 (D)</p> Signup and view all the answers

    Which of the following is NOT included in the estimated credits?

    <p>Security Deposit (C)</p> Signup and view all the answers

    What is the total estimated cash required for this transaction?

    <p>Not specified in the provided information (A)</p> Signup and view all the answers

    What is the GRAND TOTAL for NRCC+RCC?

    <p>$17,230.79 (D)</p> Signup and view all the answers

    What is the estimated cash required?

    <p>$164,630.79 (B)</p> Signup and view all the answers

    How much is the roof inspection fee?

    <p>$135.00 (A)</p> Signup and view all the answers

    What is the total monthly payment for the first loan's principal and interest?

    <p>$2,109.14 (D)</p> Signup and view all the answers

    Which of the following fees is listed as being $0.00?

    <p>HOA Dues (1 month) (A), Chimney Inspection Fee (B), General House Inspection Fee (C)</p> Signup and view all the answers

    What amount is designated for the FHA MMI Impound Account?

    <p>$0.00 (D)</p> Signup and view all the answers

    What is the total property tax pro-ration amount?

    <p>$309.54 (D)</p> Signup and view all the answers

    What is the amount charged as a Fire Insurance for the first year?

    <p>$1,045.35 (B)</p> Signup and view all the answers

    What is the estimated total for recurring costs?

    <p>$0.00 (B)</p> Signup and view all the answers

    Which inspection fee has the highest cost?

    <p>Pool Inspection Fee (B)</p> Signup and view all the answers

    Flashcards

    Buyer's Closing Costs

    The total amount paid by the buyer for the property, including the purchase price and closing costs.

    Non-Recurring Costs

    Expenses incurred by the buyer during the real estate transaction, prior to moving into the property.

    CLTA Policy

    A policy that protects the lender against financial losses if the borrower defaults on the loan.

    ALTA Policy

    A policy that protects the lender against title defects or claims.

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    Escrow Fee

    The fee charged by the escrow company for handling the closing process.

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    Doc Prep Fee

    A fee charged by the title company for preparing the closing documents.

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    Wire Transfer Fee

    A charge for transferring funds from one account to another.

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    Courier Fee

    A fee charged for delivering documents to the parties involved in the transaction.

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    County Recorder Fee

    A fee charged for preparing and recording the deed in the county records.

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    Loan Fee

    A fee charged by the lender for processing the loan application.

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    Cash Required

    The total amount of money a buyer needs to pay at closing, including the down payment, closing costs, and any pre-paid expenses.

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    Seller 1 point

    A percentage of the loan amount paid by the borrower to the lender at closing, typically used to reduce the interest rate.

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    Down Payment

    The amount of money the buyer pays upfront to secure the property, typically a percentage of the purchase price.

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    Real Estate Brokerage Fee

    Fees charged by a real estate broker for facilitating the sale of the property.

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    1st P&I

    A monthly payment covering principal and interest on the mortgage loan.

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    Total Monthly Payments

    The amount of money the buyer is expected to pay each month, including principal, interest, taxes, insurance, and other associated fees.

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    PMI

    Insurance that protects the lender in case the borrower defaults on the loan.

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    HOA Dues

    Annual fees charged by a homeowners' association for maintaining common areas and amenities.

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    Home Warranty Premium

    A type of insurance that protects the borrower if they cannot make mortgage payments due to unforeseen circumstances.

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    HOA Assoc.Transfer Fee

    A fee charged by a homeowners' association when a property is transferred to a new owner.

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    Study Notes

    Estimated Buyer's Costs

    • Purchase Price: $662,500
    • 1st Loan: $510,000 at 2.85%
    • 2nd Loan: $0
    • Estimated Credits: $5,100 (Earnest money, Prorated Taxes, Security Deposit, and seller credit)
    • Estimated Cash Required: $17,230.79 (Grand total NRCC+RCC, Down Payment, less Credit)

    Non-Recurring Costs

    • CLTA Policy: $1,649.40
    • ALTA Policy: $615.25
    • Escrow Fee: $500.00
    • Endorsement Fee: $75.00
    • Doc Prep Fee: $150.00
    • Wire Transfer Fee: $35.00
    • Courier Fee: $75.00
    • Drawing & Notary Fee: $80.00
    • County Recorder Fee: $64.00
    • Appraisal Fee: $325.00
    • Credit Report Fee: $7.30
    • Lender Tax Service: $61.00
    • Loan Fee (points): 2%
    • Additional Lenders Fee: $800.00
    • VA Funding Fees: $0
    • FHA MMI Premium: $0
    • Termite Inspection Fee: $230.00
    • General House Inspection Fee: $0
    • Roof Inspection Fee: $135.00
    • Chimney Inspection Fee: $0
    • Appliance Inspection: $0
    • Pool Inspection Fee: $225.00
    • Other Inspection Fee: $0
    • Home Warranty Premium: $0
    • HOA Assoc. Transfer Fee: $0
    • Real Estate Brokerage Fee: $0
    • Other: $0

    Recurring Costs

    • Property Tax Impound Account: $0

    • Fire Ins. Impound Account: $0

    • FHA MMI Impound Account: $0

    • PMI Impound Account: $0

    • Property Tax Pro-Ration: $309.54

    • 1st Ln Pre-paid Interest: $1,211.25

    • 2nd Ln Pre-paid Interest: $0

    • Fire Insurance 1st Year Farmers: $1,045.35

    • HOA Dues (1 month): $0

    • Other: $0

    • Estimated Total Cash Required: $164,630.79

    • Estimated Monthly Payments: $2,109.14 (1st & 2nd P&I)

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    Related Documents

    Buyer Cost Form 10 PDF

    Description

    This quiz examines the various costs associated with purchasing a property, including both recurring and non-recurring expenses. You will need to understand estimated buyer costs, loan information, and inspection fees to navigate the real estate market effectively.

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