That’s a rather broad question, and one for which there is no simple answer. But there are certain costs associated with buying that can be pinned down a bit.*  [A good lender will provide you with a "Good Faith Estimate" for you to let you know, line by line, what your costs will be. If you don't receive one of these, change lenders.]

In the Greensboro area some costs you can expect to pay, as a buyer are:

• Credit Report Fee -$50 (usually paid at the time of loan application)
• Appraisal Fee -$350 (usually paid at loan application)
• Home Inspection -$325 (not required, but always recommended, usually paid at the time of the inspection)
• Pest Inspection – $60
• Attorney’s fee – $450
• Loan Origination Fee - 1% of mortgage amount (usually)
• Flood Certification Fee – $20
• Home Owner’s Insurance – $500 (paid 1-year in advance, at closing)
• Commitment Fee – $400
• Tax Service Fee – $70
  

These costs are in addition to your down payment and any prepaid property taxes you will be charged. And these are just estimates for what is customary in our market.

What is NOT customary is something I heard earlier today where a buyer (not represented by anyone in our company) paid $1000 for an attorney fee and $1500 in commitment fee. Outrageous. The lender told the buyer he had to use this particular attorney (“He does all our closings”).

Clearly, the lender and the attorney have a real back-scratching relationship going on. It makes me mad just thinking about it.

$1000 for an attorney?? In this area? $1500 commitment fee??!!!!

Please, please, please ask questions. And you are not obligated to use any attorney you don’t want to if you are the one paying the fee. If a lender can’t manage to get a loan closed unless “Dewey Cheatum & Howe” handles things, then move on down the road. There are too many excellent lenders out there who are anxious for your business to waste your time and money on one who thinks they’re in the driver’s seat in the transaction.

Grrr.. I’m angry on behalf of that buyer, whoever he is.