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Closing Costs in Las Vegas Nevada
So you’ve found the ideal “nest in the west”. How much is
this abode going to cost, cash up front? Well, Ralph Rate, the friendly lender
fella down at National Liberty Freedom Republic Fidelity says that I can put
down anywhere from 3% to 20% but there will be additional CLOSING COSTS. So
what are they and how much do they cost? Here’s the scoop.
Closing costs are a bunch of separate fees that both the buyer and
seller pay at closing. Some fees are paid by the seller, some by the buyer, and
some are split 50-50. When you go to the closing, that’s where you sign
all the final documents, the closer (escrow officer) will give you a settlement
sheet. This sheet will account for every penny involved in the transaction.
Here is a sample sheet based on a $120,000 condo home.
| FEE |
DESCRIPTION |
BUYER |
SELLER |
| Down Payment |
This may be as low as 3%. If 20% or higher, no mortgage insurance
will be charged. The earnest money deposit that you submitted with your offer
to purchase should be credited here as well. For illustration purposes, let's
assume that you are putting a 5% down payment. |
6,000. |
|
| Credit Report |
You probably paid for this at the time you applied for the loan.
But just in case, it's usually $25-$50 and more if you're from out of
state. |
25. |
|
| Loan Origination Fee |
This fee is usually 1% of the loan amount. It's paid to the lender.
Hmm $120,000 - 6,000 = 114,000 times 1% = 1,140. |
1,140. |
|
| Recording Fee |
This is the cost of recording the new deed at the Clark County
recorder's office. The fee is customarily split between the buyer and
seller. |
25. |
25. |
| Escrow Fee |
Another split fee that pays for the services of the escrow company.
This fee will vary slightly from company to company. |
175. |
175. |
| Legal Fee |
May be charged by the escrow company to have an attorney examine
the documents. This would only be done in special cases. |
|
|
| ALTA Title Insurance |
The lender requires insurance that the property is free from liens
and encumbrances. The buyer usually pays for this. (see CLTA) |
188. |
|
| PMI |
If your down payment is less than 20%, the lender will usually
require mortgage insurance to protect the lender against loss due to
foreclosure. The insurance is paid monthly. At closing the lender will charge 2
months in advance. Later, when you have established 20% equity in the property,
you may apply to have this fee canceled. Remember to do this! |
152. |
|
| Interest Impound |
Interest is calculated on a 30-day month. If you close on the first
day of the month, you will be charged 30 days interest. If you close on the
last day, you will be charged interest for one day. Let's say you close on the
15th. |
356. |
|
| Taxes Impound |
Property taxes will be prorated to the day of closing and
adjustments will be made. The lender will want to handle the payment of taxes
and will ask you to prepay up to 8 months taxes. |
733. |
|
| Insurance Impound |
You may select your own home insurance company, but the lender will
want to control the payments. He may ask for up to 14 months of
prepayment. |
408. |
|
| Tax Service |
A one-time fee charged by the lender for setting up tax
payments. |
|
100. |
| Title Insurance |
Seller insures that he is giving you clear title to the
property. |
|
540. |
| Nevada Transfer Tax |
$2.50 per $1,000 paid to the State of Nevada by the Seller. |
|
375. |
| Loan Discount Points |
1 point = 1% of loan amount paid to the lender. Points are
negotiable between the buyer and seller but are usually paid by the buyer. |
|
|
| Appraisal |
Customary for the seller to pay on resale properties. Buyer pays on
new home construction. |
|
350. |
| Brokerage Fee |
This is the fee that the seller agreed to pay when the home was
listed. The agents and their companies have formulas for splitting this
amount. |
|
7,200. |
Existing Mortgage
Prepayment Penalty |
Paid by the seller to his mortgage company. There is no fee on FHA
and VA loans but the penalty on other types can be quite large. |
|
|
| Reconveyance Fee |
Paid by the seller to reconvey the existing deed of trust back to
the seller and clear title of that lien. |
|
107. |
| Assumption Fee |
If you are assuming the seller's existing loan, the lender will
charge this fee. On VA or FHA no-qualifying loans the fee is $125 on qualifying
$500-700. Other types up to 1%. |
|
|
| Home Warranty Plan |
Seller may choose to offer a 1-year home warranty. $300 for basic
plan. |
|
300. |
| Form 1099 |
IRS requires the closing agent to complete a 1099 form reporting
the sale of the property. |
|
25. |
| Setup/Collection Fees |
If the seller will be carrying a first or second deed, there will
be a charge for setting up a collection account. |
|
|
|
TOTAL CLOSING COSTS (INCLUDING DOWN
PAYMENT) |
9,202. |
9,197. |
How to lower your out-of-pocket closing costs
- Shop for a mortgage package that charges zero points.
- Arrange to close near the end of the month. (see interest impound
above)
- Instead of asking the sellers to accept a lower offer, ask for them
to pay for some (or all) of your closing costs.
- Call the title company in advance of the closing date and ask for a
copy of the closing statement. Check the statement for errors.
- Call title companies and compare rates. (do this before submitting
any offers to purchase)
Some Las Vegas Title Companies
First American Title Company of Nevada 702-242-0466
Land Title of
Nevada, Inc. 702-385-5566
Old Republic Title Company 702-737-2088
Fidelity National Title Agency of Nevada 702-258-1259
National Title
Company 702-737-3366
Lawyers Title of Nevada 702-385-4141
Do you know what VESTING means? Better click
here
For a list of VA closing costs click HERE.
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Phillip Henkle
Las Vegas
Buyer's Agent
Prominent Realty Group
7469 W Lake Mead Blvd Ste 130
Las Vegas, NV 89128
(702) 496-9898
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