|Address: 435 Nichols Rd Fl 3
Kansas City, MO 64112
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WHAT CLOSING COSTS CAN I EXPECT TO PAY IN KANSAS AND MISSOURI? By Maria Morton
Closing costs are fees and taxes that are paid at Closing. Your real estate agent will give you an estimate of expenses once a contract is signed. The Lender will generate a Good Faith Estimate for you when you inquire about the mortgage loan. Both of these will be ESTIMATES; the Closer at the Title Company will generate the Final HUD-1 Settlement Statement detailing the specific charges to the buyer in one column and the seller in another column.
Suppose the price of the home is $200,000.
Loan Closing Fee = $300-500. This varies between lenders.
Origination Fees – vary significantly between lenders. Some charge zero, some charge way too much. Most lenders charge an Origination Fee on loans under $50,000 – if they even do loans that small. Send the estimate the lender gives you to your Realtor and ask them for their opinion.
Loan Discount Fee, also known as ‘Points’ – One point is equal to 1% of the loan amount. On a $200,000 loan, $2,000 equals One Point. People choose to pay points up front to decrease the amount of their monthly payment.
Credit Report – $15 – 25.
Appraisal Fee – $325 – 450.
Underwriter Fee – Around $450. This is sometimes broken down into Document Preparation Fee & Tax Service.
Flood Certificate: $12 – 19. This tells you if you need Flood Insurance. FEMA dictates which areas are in the 100 year flood plain. Lenders require flood insurance on any homes in the FEMA flood plain.
PMI Premium: is usually financed.
VA funding Fee: is usually financed.
Mortgagee’s Title Insurance Policy: $200. The Lender is the Mortgagee; the Buyer is the Mortgagor.
Recording Fee: $75 – 95. The transfer in deed is recorded at the County Recorder’s Office.
Kansas Mortgage Tax: Only paid on transactions in the State of Kansas. $2.60 per every $1,000. In our example = $520.
Broker’s Administration Commission: $210 – 225. Paid to the real estate brokerage.
Inspections: Whole House $350 – 475. Wood Boring Insects: $75 – 100. Radon $80 – 110.
Homes Association Dues Proration: Depends upon the HOA. The Seller will pay up to the day of Closing; the Buyer will pay for after the day of Closing.
Home Warranty Fee: $425 – 525. The seller usually pays for this, if it is in the contract to purchase.
RESERVES: The Lender will require an amount to be deposited into an escrow account to cover interest for 10 days $286, Hazard Insurance for 14 months $1,050, Property Taxes for 2 months. THESE RESERVES VARY ACCORDING TO EACH PROPERTY AND THE LENDER.