Goodspeed: Here are the rest of the closing costs for buying a home

Linda Goodspeed
Correspondent

Last week in response to a reader asking about closing costs and what to expect, I talked about the fees associated with getting a mortgage, such as loan origination and underwriting fees, a possible fee to lock in an interest rate and points, as well as the appraisal fee. Other fees to expect:

- Title search and insurance: A title search ensures there are no issues with the ownership of the home or liens or judgments against it. A title search ranges from around $150 to $500.

In addition, most lenders will require title insurance as added protection against any disputes after closing.

The lender’s title insurance policy is usually paid by the borrower in a one-time premium ranging from $200 to $2,000, depending on the home’s price and location. Owner’s title insurance is optional, but usually recommended.

Sometimes, to confirm borders, the title company will order a land survey. Costs vary by marketplace, but average around $400 to $700. If there is an existing land survey of the property that is less than 10 years old, you might be able to use that survey.

Legal fees: Legal fees cover the costs of hiring an attorney to review all documents and guide you through closing. Legal fees vary widely, and can range from an hourly rate (expect at least $150 an hour), or perhaps a set fee.

Other expenses include a credit report to determine your credit worthiness. Some lenders cover this cost, but if not expect to pay around $50.

If you are buying in a flood plain area, the lender will require you to purchase flood insurance. There are also fees for recording the deed or mortgage. These vary by county. Buyers will also be required to keep at least two months of property taxes in their escrow account and pay at least the first year of their homeowner’s insurance.

As you can see, there are a lot of additional costs associated with buying a home. One piece of good news for buyers: In Massachusetts, the burden of paying property transfer taxes rests with the seller.

Linda Goodspeed is a longtime real estate writer and author of “In and out of Darkness.” Email her at: lrgoodspeed@comcast.net.