So, you are ready to buy a home. What will it actually cost in terms of out of pocket expenses. In addition to your down payment, there are closing cost. The approximate cost is 3% of the purchase price of your new home. Here are some of the fees:
Title Insurance - (This insures that you are receiving the property free and clear of liens, except your new mortgage)
Prorated Property Taxes - (You will make sure the property taxes are current, however you are paying the taxes at the sellers tax rate. Within 6-12 months you will receive a Supplemental Tax Bill which is the difference between the sellers property bill and your property taxes. Property taxes are based on the purchase price of your home.)
Any lender fees - Often these fees are minimal
City transfer tax - the city wants their money
The following is a list of the cities in Alameda County and their transfer tax. (Emeryville has No city transfer tax!!!) Typically this tax is divided equally between the buyer and seller, for example if the city transfer tax is $15 per $1000 dollars of purchase price and the purchase price is $500,000 then the buyer and seller will each pay, $3750 in transfer cost as part of their closing cost.
Transfer Tax in Alameda County Cities:
City of Alameda: $12.00 per thousand
City of Albany: $11.50 per thousand
City of Berkeley: $15.00 per thousand
City of Hayward: $4.50 per thousand
City of Oakland: $15.00 per thousand
City of Piedmont: $13.00 per thousand
City of San Leandro: $6.00 per thousand
County transfer tax is $1.10 per thousand and this is generally paid by the seller.
If you are confused at all, call me at 510.693.4253 or email me at email@example.com