Bank expenses fees including but not limited to processing fees, application fees, credit reports, tax service fees, document preparation fees, etc., are less than $1,000 in a typical transaction. Above and beyond that, there may be points. A point equals 1 percent of the mortgage loan amount. This may well be the biggest expense of the buyer. A buyer typically pays a title search fee that is approximately $100 to $275. Title insurance costs approximately $4 per $1,000 of coverage. Attorney fees for representing a bank and the buyer are typically in the $500 to $1200 range and for personal representation $100 to $250 range. Recording fees are typically less than $1,000.

In addition, many banks now require that there be an escrow for taxes and fire insurance, and this typically can be as much as five months’ worth of taxes, depending on when the transaction occurs. In addition to the tax escrow, the buyer reimburses the seller for the taxes prepaid by the seller. It generally works out that between the tax reserve and the amount reimbursable to the seller, a buyer pays seven months of taxes at the time of closing.

The buyer also reimburses the seller at closing for fuel oil, and most fuel oil in the tank the day of closing. The tank is usually topped off at the time of closing, and the buyer reimburses the seller for a full tank of oil. Last, but not least, if required by the lender, the buyer may have to pay for private mortgage insurance, which is sometimes paid for one year in advance. The amount of mortgage insurance varies.