What are “closing costs”, and what costs should I expect to pay as the purchaser?
Closing costs are fees associated with the purchase and sale of real property. While each situation is different, your closing costs will vary depending on a number of factors, including whether you are paying cash for the property or financing it, the number and type of inspections performed, and the amount of work necessary to perform an accurate title examination. If you are financing the property through an institutional lender, you can expect to pay the following fees: a loan origination fee (usually 1% of the loan amount), an appraisal fee, a tax service fee, a credit report fee, recording costs, any mortgage broker’s fees, and possibly a commitment fee. Additionally, you may be required to pay prepaid interim interest and up-front escrows for taxes and hazard insurance. As the purchaser, your attorney’s fees include the title examination and the preparation of all of your closing documents.
