Closing costs and settlement charges are the same thing. When you buy a home you pay just two kinds of fees: (1) charges for title examinations and document preparation paperwork, and (2) prepaid (or escrow) real estate taxes and insurance. You may also pay loan origination fees to the holder of your mortgage. The costs in the following chart are approximate. Check with your builder, Realtor and tax advisor to find out what the actual closing costs will be for your new home.

CLOSING COST GUIDE-GOOD FAITH ESTIMATE

TITLE CHANGES
Attorney fee-Legal services for title examination, obtaining title insurance and conducting the loan closing: $400 to $450.

TITLE INSURANCE
Protects against loss due to problems or defects in the title which cannot be found on public record. $2 per $1000 coverage up to $100,000: $1.50 per $1000 coverage over $100,000.

TRANSFER CHARGES
Recording fee-Recording fees for deed, deed of trust, and any and all other documents: $25 to $27 (average).

ADDITIONAL CHARGES
Survey-Required to show the exact locations of house and lot line: $200-$300.

LOAN ITEMS
Appraisal-Statement of property value made by an independent appraiser: conventional $300; FHA $300; VA $300.
Credit report-A report from a reporting agency covering borrower's credit history: $58.

PREPAID ITEMS
Funds paid by the buyer and held in an account by the lender to assure future payments for such recurring items as real estate taxes, hazard insurance and mortgage insurance (on conventional loans).
      - 14 months hazard insurance
      - 2 months mortgage insurance
Number of months that taxes are prepaid depends on month of closing
Interest-Interim interest is collected on the loan amount from date of closing for the balance of the month closed.

LOAN LIMITS
     - FHA-varies up to $154,755 - VA-$203,000
     - Conventional-$240,000
     - Jumbo-over $240,000

The above information is for example purposes only and should not be construed as legal advice. Consult your tax advisor and lending institution for advice specific to your situation.