What are closing costs?
Closing costs are all costs required to close the real estate transaction. They can include (but are not limited to) surveying fees, property taxes, title insurance, attorney fees, agent fees, points, loan origination fees, primary mortgage insurance (PMI), and the balance of your down payment. Prior to closing, you should review your final closing statement or HUD-1 Statement (whichever is in use) to ensure that all the calculations are correct and that you have been given all the credit for deposits and other agreed upon buyer and seller credits. Also recheck all lender, title, and escrow fees to make sure they are accurate.
We incur expenses when processing your loan, such as having a title search completed and appraising the value of your home; these are third party fees that must be paid at closing. We will provide you an estimate of what these costs will be based on your specific details. If you are reviewing offers from other banks, use these estimated costs to compare and make sure you’re getting the best deal.
Closing costs are sometimes also called settlement costs. These are the costs a lender charges for funding and completing your loan and are generally charged at the time of closing (or settlement). They often include discount points, which are fees paid to lower your interest rate. Settlement costs/closing costs vary greatly depending on your state, county, and/or metropolitan area.
Closing costs are any taxes, fees for services, or other charges incurred by the buyer or seller in connection with the purchase transaction. The purchase and sale agreement should state which costs are payable by buyer and which costs are payable by seller. Closing costs for which the buyer is usually responsible include points, fees and costs payable to lenders, the insurance premium for the lenders title insurance policy, one half of the escrow fee, fees for recording the title and any security documents required by your lender (a deed of trust or mortgage), document preparation fees, prepaid interest and pro-rated property taxes. Closing costs for which the seller is usually responsible include the insurance premium for the buyers title insurance policy, one half of the escrow fee, fees for recording any documents necessary to clear title to the property and the real estate excise tax. In addition, the buyer or seller may owe a real estate commission to one or more agents. If you a
