Your Closing Cost on a Condo
Buyers and Sellers
Buyer's Cost for a Louisiana Condo
Each state and Parish are going to have some variations of fees and charges. It is possible to close in Louisiana in a week. Most people will allow themselves about 30-45 days to get everything done. Your lender should give you a truth in lending statement. Always check it over. As a realtor I can point out mistakes and fill in the exact amounts once the property is identified.
Your Lenders Fee
This fee is dependent upon the lender that you choose. All lenders are going to charge you for an appraisal which is about $350 and some additional fees. A direct lender fees are going to be lower than those of a broker. The lender than I use total charges for an A paper loan is going to be around $900 on any loan regardless of the size. There are going to be some additional fees if you have an FHA or VA Loan.
The deposit that you put down will be a credit. If you put a $2,000 deposit down you will get a $2,000 credit as the listing company will have the check for the title company.
Orleans Parish Property Taxes
New Orleans collects its property tax for the year ahead unlike most places in the country. As a buyer you will have to pay the seller the part of the year he will not own the condo. It will be paid at his rate however. If you buy in June, the owner will have already paid for that year and you will credit him for the remaining months of the year.
Other Metro Area Parishes PropertyTaxes
The property taxes in the other metro area parishes collect taxes in arrears which means you pay at the end of the year. In this case the buyer will get a credit from the seller and pays the taxes at the end of the year. If you buy in May then the seller is giving the buyer the part of the year that he was in the house.
Since the Insurances are paid in the condo fees, the only item that will be escrowed is the property tax. The lender will collect enough funds so that the account will be fully funded at the end of the year. They will collect an extra 2 months. Mortgage Insurance is paid monthly if you generally put less than 20% down. This is not escrowed but paid monthly.
Your protection that all the legal aspects of your purchase are protected. This is mandated by all lenders and the rates are set by the state of Louisiana. The more expensive the sale, the more expensive the cost. This is good for the life-time of you owning the property. Always a great idea not to pass this up.
Closing Attorneys fees
Most people think this is a big item but its not that large. it should be under $500. The title company makes most of their money in the Title Insurance premiums. This should include Title search, settlement fees, Title Exam, and Notary fees. All this as a group should be around $500.
Parish Recording Fees
The Title company will have to record the sale and mortgage with the parish courthouse. This should cost you around $300 which the title company pays directly but paid by the purchaser.
Prorated Condo Fees
If you buy a condo and close anytime during the month that will more than likely that the seller has already paid the condo fees at the beginning of the month. The buyer will credit the seller the portion that he is going to use. if the fees have not been paid then the seller will have funds taken out of the proceeds to be paid to the condo association.
The Title Company will collect all the above fees and make sure they are paid quickly. Their profit comes from the Title insurance which is a set amount based on the sales price of the property. It is required by the lender in most all cases. You do have to get this on a cash sale but it foolish not to insure one of your largest assets.
Sellers Closing Costs for a condo
Some sellers think they have no cost but that is not true. Thier fees will not involve the lenders and escrow accounts.
Your title Costs
The sellers fees from the closing attorneys should be less than about $600 which includes title exams, fee to cancel mortgage, and releases
There is the payoff of the mortgage for the seller.
Taxes in Orleans Parish
The seller pays his taxes in advance so when the sale comes around, he will get the unused portion back as a credit from the buyer.
Taxes in other Parishes
The buyer will get a credit from the seller and will be responsible for the taxes for the rest of the year. If you sell in August at the end of the month you would give the buyer a credit and he would pay the taxes.
Prorated Condo Fees
The seller will get a credit from the buyer if the seller has already paid his fees for that month. Its based on the days they are the owner of the unit.
Orleans Transaction Fees
The seller will pay a $375 transaction tax on all transaction.
Seller Paying some of buyers closing cost.
This is always a negotiable negocibable figure. The seller is interested in his net price. If that means helping the buyer who want wnat to preserve cash then its OK. Its always advised to check with the lender to see what they will allow.
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If you have any questions send me an e-mail or pick up
the phone and call me. Thanks Eric
Knowing your cost before closing is much
better than those suprises. 504-212-0072.