We frequently remind Realtors that credits for closing costs can be for both recurring and non-recurring closing costs. Credits should always just be for “closing costs” without delineating “recurring” and “non-recurring” costs.
Recurring costs = Interest, Property Taxes, Insurance, HOA Dues; Non-recurring costs include all one-time fees such as escrow, title insurance, appraisal, notary, underwriting, etc.
Closing cost credits can also cover transfer taxes and impound/escrow accounts. This is very important in cities like Oakland where the transfer taxes and impound accounts combined can easily hit $10,000.
Founder/Broker | JVM Lending
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