Common Closing Costs

COMMON CLOSING COSTS

For Buyers

You’ll likely be responsible for a variety of fees and expenses that you and the Seller will have to pay at the time of closing.  Your lender must provide a good-faith estimate of all settlement costs.  The title company or other entity conducting the closing will tell you the required amount for:

1.   Down payment

2.   Loan Origination – typically 1% of the purchase price

3.   Points, or loan discount fees, which you pay to receive a lower interest rate

4.   Home inspection

5.   Appraisal

6.   Credit report

7.   Private mortgage insurance premium

8.   Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage

9.   Property tax escrow, if being paid as part of the mortgage.  Lenders keep funds for this

10.  Taxes and insurance in escrow accounts as they are paid with the mortgage

11.   Lenders pay the insurance of taxes for you in in an escrow account.

12.   Deed recording

13.   Title insurance policy premiums

14.   Land survey

15.   Notary fees

16.   Prorations for your share of costs, such as utility bills, HOA dues, and property taxes