Closing Costs for Orange County Home Buyers in 2021
When you buy a home in Mission Viejo or anywhere else in Orange County, California, there’s a host of additional items besides your mortgage that you need to cover. You will also find a number of other costs involved with purchasing a home, which are called “closing costs”. The uncertainty home buyers have is how much will they have to pay.
Home buyers in Orange County (and other cities and counties in California) for the most part spend from 1% up to 3% of the contract price of the home in closing fees. What this means is that a high-priced home in Laguna Beach for $2 million could end up with higher closing costs starting near $20,000 and the same is true for lower priced homes.
According to Zillow, the median home price in Orange County was around $792,000 as of Nov. 2020 showing a 7% gain year over year. So, the buyer’s closing costs on a median-priced property in the city could range from $7,920 to $23,760.
Based on ClosingCorp. , a real estate statistical reporting company, California ranked number nine for the top 10 states with the most expensive closing costs. This is despite having a 1.05% average closing cost on a home. A low percentage is good but a higher average selling price makes up for it.
Home buyers throughout the golden state pay an average of $6,537. However that’s dependent on an average home price of $622,881, which “was the average” for the whole state in 2019. As of now, the average home price is $640,300. Houses are more expensive in the Orange County area so naturally closing costs will be higher there too.
How much you’ll actually end up paying in closing costs in Orange County depends on several factors. If you want the lowest interest rate, are you willing to pay points at closing? It’s one of numerous factors that can determine the total amount you pay on the date of closing where you get the keys.
Mortgage lenders and brokers will provide you a loan estimate of your Orange County closing costs in the beginning. Some lenders go a step further by providing guaranteed closing costs. Once the lender fees are disclosed they are guaranteed to not change unless you choose to get a lower rate later in the process.
Third-party fees such as settlement agent, title insurance, appraisal are also supposed to not change. The loan estimate gives you a more accurate snapshot of your total costs to have funds ready for the final closing date.
The following are some of the usual items that reflect a home buyer’s closing costs:
• Fees for running the borrower’s credit report(s).
• Fees for loan or broker origination
• Fees for loan processing.
• Underwriting fee, which covers the cost of evaluating the loan and borrower.
• Discount points or fees, which borrowers may use to get a lower interest rate.
• Home appraisal fees (many times these are paid in upon ordering).
• Title search and insurance fees, for the lender; optional for home buyer.
• Property survey to confirm property lines, encroachment, etc.
• Attorney / legal fees, in some cases.
• Recording fee paid to Orange County County Clerk for recording new ownership records.
This list may be incomplete but it shows you some of the common closing costs when buying a home in Orange County, California. Extra fees and changes may be necessary in certain situations.
Still Have Questions About Closing Costs in Orange County?
Are you all set on the topic of closing costs in Orange County or are you ready to apply for a mortgage, we’ll be glad to help you and refer you to our recommended licensed professionals.