Today I wanted to go over closing cost which is a subject that has so many variables that it is important to keep in mind that this is just an overview and each transaction and amounts can and in most cases will be a bit different, also do not let the numbers we are talking about discourage you from a home purchase.  It can seem that getting the kind of money together needed to make a home purchase is a huge task but the rewards are enormous and well worth it.  It is worth noting as well that the fees and closing cost we discuss are in most cases negotiable.  This example is just that, an example and could not include every variable.  I also chose common fees and charges but this does not mean each will be included in your loan or that there might not be additional charges.  There are times when some of the cost is rolled into the loan as well which does add interest to this amount which means you pay more in the end rather than paying it all upfront but this option can be very helpful to get some buyers into their own home.  I say these things to let you know there are options out there to help folks get into the home they have always wanted.  With this in mind lets dive into closing cost so I can give you an idea of what you are up against and it is worth mentioning again that this is by no means an exact amount but a ballpark figure because so many things can vary but this discussion should help you understand what you are up against.  Let’s start with the loan fees and charges which if you are lucky enough to be a cash buyer these all go away since there is no need for a loan but as in most cases loans being needed, we will cover these.  Usually the biggest fee a lender charges is the origination fee which does vary and at times is negotiable and when shopping for a lender the cheapest is not always the best.  This being one of the biggest variables in your closing cost we will use the amount of $1100 on a $200,000 dollar loan.  Before we move on some lenders charge an application which also vary but usually does not top $50 but we will use the amount of $25 in this scenario.  With a lender involved an appraisal and home inspection are almost always required and these are services you can shop for. We will stick to a home around $200k and will use the amounts of $375 for an appraisal and $275 for a Home Inspection.  This brings us so far to a total of $1,775.  If the seller has a survey of the property that meets the lenders requirements in most cases they can be used saving you on average $350 but we will add it in to the total for this explanation for a total of $2,125.  There are times as well when a pest inspection will be required which will run you around $100. You also have prepaid interest and in this example I will ballpark this figure at about $375 but this is a hard one to gauge being your interest rate you are approved for plays a big role in this amount.  This will bring our total to $2,600.  The lender will require you in most cases to purchase home owners insurance for a year in advance which in Texas a good average would be around $1500 a year but this again has too many variables to give a true number.  The next expense will be setting up your escrow account for taxes and insurance which is an account that holds money to ensure your taxes and insurance are paid which protects the lender and your investment in the home.  Today I will use a nice round number of $1300 to set up the escrow account which in most cases is made up of 3 months of payments for taxes and insurance.  Then there is title insurance which is typically paid by the seller but in this case we will add $450 to the total which is a good number for splitting the cost.  There are also some common fees and charges like tax services and filing fees, postage, flood certification, attorney’s fee etc… which in most cases will add up to an average of $525 bringing our total to $6,375.  Again, I know this amount can seem d