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?

$10,200.00 Signup and view all the answers

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

$500.00 Signup and view all the answers

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

To evaluate the property’s value Signup and view all the answers

Which fee is associated with the ALTA Policy?

$615.25 Signup and view all the answers

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

$75.00 Signup and view all the answers

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

Security Deposit Signup and view all the answers

What is the total estimated cash required for this transaction?

Not specified in the provided information Signup and view all the answers

What is the GRAND TOTAL for NRCC+RCC?

$17,230.79 Signup and view all the answers

What is the estimated cash required?

$164,630.79 Signup and view all the answers

How much is the roof inspection fee?

$135.00 Signup and view all the answers

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

$2,109.14 Signup and view all the answers

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

HOA Dues (1 month) Signup and view all the answers

What amount is designated for the FHA MMI Impound Account?

$0.00 Signup and view all the answers

What is the total property tax pro-ration amount?

$309.54 Signup and view all the answers

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

$1,045.35 Signup and view all the answers

What is the estimated total for recurring costs?

$0.00 Signup and view all the answers

Which inspection fee has the highest cost?

Pool Inspection Fee Signup and view all the answers

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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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.