Buy My First Home

ESCROW AND TITLE FEES

Different companies charge different amounts.  Some charges are more or less the same from company to company.  One company may charge less on the base fee but will charge more on the Loan Tie-in (a fee charged by escrow companies to cover the extra administrative work needed to process more than one loan, as in a 2^nd Trust Deed). As a result of the difference in base fee vs loan tie-in fees, there is little variation between companies unless they are “in house” escrow companies.  “In house” means a company belonging to a large real estate firm.  Those are often significantly higher than outside escrows.

More important than the fees is the escrow company’s ability to remain a NEUTRAL THIRD PARTY that favors no one.  That is their job and what they are hired to do.  “In house” companies seem to be immediately in conflict with that task.

Here is a list of what is currently charged by some local escrow and title companies. These are intended as examples only.  The rates change from time to time, though these are current at this writing, they may have changed at the time of your reading.

*first loan. Second loan is $70.

**first loan. Second loan is $75.

Additional common charges include, but not limited to:

Title: 

Wire Transfer of Funds                         $15-50

Endorsement Fees                                 $65.

Recording Fees                                     $25-100

Escrow:

Drawing Grant Deed                             $25-75

Notary Fee                                           $25-100

Messenger Fee                                     $25-75

The above are not charged by all companies nor are they charged every time.  This is just to show some of the fees that are usual and may appear in your closing.

What does all that mean to you?  Your escrow fees can be anywhere from $1,000 to $1500 on a purchase of $400,000.  Your title fees can be anywhere from $750 to $1,000 on a purchase of $400,000.

As a buyer your most major closing costs are usually fees charged by the lender for your loan. A great deal depends on the program you are getting from the lender.  For sellers, of particular concern, are PRE-PAYMENT PENALTIES.  Many people have these and are unaware of this.  It is prudent, if you are considering selling, to call your lender, before you sell your house, and find out if there is a pre-payment penalty.  Ideally you would have been made aware of these as a buyer. A responsible agent will make sure you are aware of this.  These penalties can be as little as a few hundred dollars or as much as six months worth of interest (tens of thousands).

The above escrow fees and title fees are part of your closing costs as well.

Other costs sellers can expect:

• City transfer tax and County transfer tax ($5.50 per $1000)
• Termite Clearance*
• Loan Pay Off fees*
• Commissions*
• Home Warranty ($400)
• City of LA Compliance Fees ($90)

*Can vary widely from company to company.  Call and get your estimates and get a Termite Inspection early!

Tomi Lyn Bowling

Broker

Tomi Realty Inc.

DRE License #01145550

Tomi has been a highly successful real estate agent in Southern California since 1992.