usctrojancpa
Well-known member
One of my buyers closed on the purchase of their new Irvine Pacific home earlier this week. So I thought it would be helpful for me to go over the closing costs of purchasing a new Irvine Pacific home with all the potential buyers out there. All of the closings are handled by First American Title as both the escrow company and the title company. Here is a breakdown on the costs you can expect:
Purchase Price - cost of home plus selected design center upgrades
Initial Deposit - will count as your required down payment
Deposits for Design Center Upgrades - will count as your required down payment
Property Tax Proration - you will be responsible for the property taxes on TIC's land value from your closing date to 12/31/11 if you close before before 12/31/11 (if you close 1/1/12 to 6/30/12 then you will be responsible for the taxes from your closing date to 6/30/12). You will pay the building portion of the property tax via a supplemental tax bill in Dec. 2012 and April 2013.
HOA proration - you will be responsible for the HOA monthly fee from your closing date until the end of the month
Prepaid Interest - If you close on or after the 10th you will be responsible for only the interest from your closing date until the end of the month (If you close before the 10th then you'll get a credit for the interest, but check with your lender as this varies from lender to lender).
Lender Costs/Interest Rate Buydown/Impound Account - will vary based upon your financing situation
Escrow Fee - approx. .19% to .20% of the purchase price (lower than .25% to .30% that you'll pay for re-sale transactions)
Owner's Title Policy - approx. .13% to .15% of the purchase price (the sellers normally will pay this cost for re-sale purchases and the amount will be more than 2x this amount)
Lender's Title Policy - approx. .07% to .075% of the loan amount (buyers pay this for re-sale purchases and this amount will be more than 2x this amount). If you are a cash buyer, you will not have this cost.
County Transfer Tax - will be .11% of the purchase price (sellers normally pay this amount for re-sale purchases, same amount)
Wire/Recording Costs - will range from $60 to $120
Homeowner's Insurance/HO-6 Insurance - this will be the annual insurance premium for the home
Natural Hazard Report - $30 (sellers normally pay this for re-sale purchases and the amount is more like $80 to $100)
HOA Monthly Fee - escrow will pay for the HOA monthly fee for the month after the month that you close escrow
Other HOA Fees - escrow fee to HOA and Homeowner Welcome Package (each were $75 for my buyer, but can vary depending on the HOA...these amounts are normally paid by sellers for re-sale purchases)
First American doesn't seem to charge other escrow garbage fees like loan tie-in fees, document fees, courtier/shipping, etc which can total anywhere from $500 to $700. The escrow officer at First American was very responsive and on top of things, replying to emails and phone calls within a few hours. That all made for a very smooth escrow. Let me know if you guys have any other questions.
Purchase Price - cost of home plus selected design center upgrades
Initial Deposit - will count as your required down payment
Deposits for Design Center Upgrades - will count as your required down payment
Property Tax Proration - you will be responsible for the property taxes on TIC's land value from your closing date to 12/31/11 if you close before before 12/31/11 (if you close 1/1/12 to 6/30/12 then you will be responsible for the taxes from your closing date to 6/30/12). You will pay the building portion of the property tax via a supplemental tax bill in Dec. 2012 and April 2013.
HOA proration - you will be responsible for the HOA monthly fee from your closing date until the end of the month
Prepaid Interest - If you close on or after the 10th you will be responsible for only the interest from your closing date until the end of the month (If you close before the 10th then you'll get a credit for the interest, but check with your lender as this varies from lender to lender).
Lender Costs/Interest Rate Buydown/Impound Account - will vary based upon your financing situation
Escrow Fee - approx. .19% to .20% of the purchase price (lower than .25% to .30% that you'll pay for re-sale transactions)
Owner's Title Policy - approx. .13% to .15% of the purchase price (the sellers normally will pay this cost for re-sale purchases and the amount will be more than 2x this amount)
Lender's Title Policy - approx. .07% to .075% of the loan amount (buyers pay this for re-sale purchases and this amount will be more than 2x this amount). If you are a cash buyer, you will not have this cost.
County Transfer Tax - will be .11% of the purchase price (sellers normally pay this amount for re-sale purchases, same amount)
Wire/Recording Costs - will range from $60 to $120
Homeowner's Insurance/HO-6 Insurance - this will be the annual insurance premium for the home
Natural Hazard Report - $30 (sellers normally pay this for re-sale purchases and the amount is more like $80 to $100)
HOA Monthly Fee - escrow will pay for the HOA monthly fee for the month after the month that you close escrow
Other HOA Fees - escrow fee to HOA and Homeowner Welcome Package (each were $75 for my buyer, but can vary depending on the HOA...these amounts are normally paid by sellers for re-sale purchases)
First American doesn't seem to charge other escrow garbage fees like loan tie-in fees, document fees, courtier/shipping, etc which can total anywhere from $500 to $700. The escrow officer at First American was very responsive and on top of things, replying to emails and phone calls within a few hours. That all made for a very smooth escrow. Let me know if you guys have any other questions.
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