Many new home buyers must pay a fee for a lawyer as part of their closing costs when buying a home with a mortgage loan. This article is part of our closing costs tutorial. Here we will discuss the attorney fee closing costs.
Unlike most expenses included in closing costs the attorney fees will not have to be paid by everyone. Only people who elect to hire an attorney to take a look at all the contracts on their behalf to make sure things are the way they are suppose to be will have to pay this fee. There are exceptions.
What Home Loan Borrowers Pay Attorney Fees
There are only two scenarios in which a home buyer will have to pay attorney fees as part of their closing costs. We have made a short list below.
Home buyers who live in a state with state laws that demand a home loan borrower have an attorney to ensure that their interests are protected will have to pay the attorney fee at closing.
Some state laws mandate that the buyer have an attorney representing their best interest and some states do not. Your lender or real estate agent will know.
Most states do not. The states that do are typically located in the north east.
Choice of the Buyer
Just because you live an a state that does not demand that you have an attorney looking out for your best interests does not mean that as a home buyer you should not hire one. If you want to ensure that everything is as you think it is than hiring an attorney is a great way to ensure this.
The downside of course is that you will have another cost to add the already hefty list of closing costs you are responsible for.
Typical Attorney Costs
We most likely do not need to tell you that hiring an attorney is not cheap. The exact price for an attorney to help you with these matters will vary depending on individual circumstances. That being said we can give you an idea of what past home buyers have paid.
On the lower end of the spectrum a typical home buyer might pay 150.00 to 200.00 dollars in attorney fees. On the higher end of the spectrum an home buyer may pay 350.00 to 650.00 dollars for an attorney. Some people will pay much more.
Final Thoughts for Home Buyers
We want to point out a thought for home buyers who live in a state that does not require a buyer to have an attorney. As a consumer you may like the idea of having someone on your side who knows what their doing. Though there is never a replacement for the assurance an attorney can provide their are other people who may be able to provide some knowledgeable home finance help.
This could be a financial advisor, a friend, or some other worthy and knowledgeable professional. You can get creative. The key is to ensure that they are knowledgeable and do not have any conflicting incentives.
Where to Go Form Here
If you are a home buyer than you may want to take a look at the central closing costs tutorial page. Another popular and related resource with in this tutorial is the loan origination fee expense closing cost. We also have an article on loan origination points.