Congratulations, you’re looking to purchase a new home and the sellers have accepted your offer. What are the closing costs when purchasing a home in Las Vegas can you expect to pay during the home closing process?
There are three closing steps in the home closing process that all incur fees that make up the closing cost. They are the loan, legal, and title processes that together make up the closing cost of your home. The cost of each will vary depending on the details of your home deal. The costs will be estimated when you start to work with a lender and on a full closing disclosure before you close will have every cost stated. At the end of the process, you will have a home inspection fee, along with a home appraisal fee. These two fees, on average, combine to about $1000.
Closing on a home is all about you becoming the new legal owner of this home. Public record currently shows that this home belongs to the sellers because title establishes their legal ownership.
Swapping legal ownership requires three steps, and those steps are loan, legal, and title.
How do you find the title companies?
Realtors have relationships with title companies that have proven themselves through past deals with either the agent or the brokerage the agent is at.
What is the loan process in the closing cost?
The loan process, where the lender is going to loan you, the buyer, the money to purchase the home. You the borrower promise to pay back the loan over time. The lender has fees such as loan origination, interest, insurance, and they hold money for reserves.
Origination is the upfront fee charged by the lender for processing a new loan application, used as compensation for putting the loan in place.
Interest is the amount the bank has earned of the course of the loan time. It’s the cost for using the money that was lent to you upfront to purchase the house.
Insurance (PMI) is required when you have a conventional loan and make a down payment of less than 20% of the home purchase price.
Money for reserves are for when you’re moving into your primary residence, your credit score is below 660 or your down payment is on the smaller side. (Usually under 20%)
What is the legal process in the closing cost?
The legal process, this is to ensure that public record shows that you are the legal owner of the home. The government has to record of the transfer of the title to you on this house. Fees will incur during this process are recording and transfer fees and of course, you’ll have local taxes.
Recording fee in Las Vegas is $160.
The transfer fee in Las Vegas is $500.
Local Las Vegas taxes are 0.91% of the home’s sale price.
What is the title process in the closing cost?
The last step in this closing process is title, this is where the title and escrow company will actually handle the transferring of the title from seller to buyer.
On average buyer and seller are going to split the escrow fees in Southern Nevada. The title company’s also going to provide you the buyer, a title search to ensure that all parties are protected. In order to protect you, the buyer and your new investment, title insurance is going to be put in place.
The title insurance and escrow fee costs average two to three percent of the total cost of the home.
To quickly recap, the closing process, three steps, loan, legal, and title, each have their own fees depending upon the value of the home. Before your final signing with title, they will provide you with a closing disclosure with all of these costs summarized.
The last two major fees you’ll incur when purchasing a home are your inspection and appraisal fees.
You can expect to pay right around $1,000 for the inspection and appraisal fees combined.
If you have more questions about closing costs when purchasing a home or Las Vegas questions reach out to us here at the McNamara Group at Coldwell Banker Premier Realty. We look forward to hearing from you.
And for a more in-depth buying guide check out our article on everything you need to know when buying a home in Las Vegas.