THE BEST LAS VEGAS PROPERTIES
In a all-cash
purchase, the only fees are ESCROW ($150 + $1.50 per thousand), your
first year's FIRE INSURANCE ($250-$300), a fee to the County to record
the GRANT DEED ($40) and reimbursing PROPERTY TAXES the seller has paid
purchases involving a loan, a good rule of thumb is 1 1/2% of the purchase
price plus any points on the loan. Here's a breakdown of the costs:
- A TITLE
INSURANCE policy will be required for the lender, figure on $350 for a
- The are
various LENDER FEES that go by various names such as "Funding
fee", "Document prep fee", "Origination fee",
etc. Forget the names; just ask the lender for the bottom line total, or a
Good Faith Estimate.
- POINTS may be charged on your loan if you are
going after a better interest rate.
- If you
have an IMPOUND ACCOUNT that allows the lender to pay your taxes
and fire insurance, the account will need some money to start it off. This
will vary depending on where we are in the tax year so that TAXES
can be paid.
- If you
purchased in a community with a HOMEOWNER'S FEE, these would also
be paid ahead of time.
- The FIRST
MONTH'S MORTGAGE PAYMENT is also made in escrow, or at least a portion
of a month. This is so your first payment is not a partial payment, which
messes up the bank's bookkeeping. For example, if you close March 15th,
you will pay interest until March 31st in escrow. Your first mortgage
payment will be due May 1st, which pays for April because mortgage
payments are always made in arrears.
- If you
purchase with less than 20% down, expect to pay PRIVATE MORTGAGE
INSURANCE, or PMI for short. The portion of the loan over 80%
loan to value is the riskiest part for the lender. With low-down
government loans like VA and FHA, the government insures this part for the
lender. For conventional loans, private insurance companies provide the
same service, for a fee. A typical charge is .5-.75% of the loan amount
per year, so divide by 12 to get the monthly figure. You start off the impound
account with 2 months up-front, and then a monthly fee until the
loan-to-value reaches 80%. This can happen through appreciation, or from
just paying down the mortgage over time. You have to request the insurance
be removed on your own when you feel you have 20% equity. The insurance
company is happy to collect from you forever unless you challenge it.
Your out-of pocket expenses will be an APPRAISAL FEE and a CREDIT
REPORT fee. Expect around $350 for these services that the mortgage broker
will need to provide for you prior to getting the loan.
Another out-of-pocket is the PHYSICAL INSPECTION. When you purchase a
resale home, you have the right to hire whatever professional inspectors you
want to look the place over and give you recommendations. This will run from
$200-$300, but I always advise that you do it to avoid surprises later. Also,
the inspection report gives us third-party documentation when we ask the seller
The numbers used in this article are approximations, and used for educational
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© 2020 Marc Gohres
Revised April 12, 2020 9:57 AM