What is included in closing costs?
Closing costs can be divided into three categories: Lender fees (points, appraisal, credit report, underwriting, settlement and tax service fee) Prepaid (interim interest, real estate taxes and escrow, insurance premiums and escrow) Settlement costs (title insurance, settlement/attorney fees, city/county/state taxes, recordation and messenger fees Top
You will get an estimate of closing costs well in advance of the actual closing. You should read the estimate carefully and question any fees or charges you don’t understand at that time. The costs you will generally pay at closing, in addition to the cost of the purchase, include: The Lender’s fees (origination fees, any points, appraisal, credit report, underwriting, settlement and tax service fee) Advance payment These charges cover ongoing homeownership costs that you will owe after the closing but before the first monthly mortgage payment. (interim interest, real estate taxes, insurance premiums) Settlement costs (title insurance, inspection fees, attorney fees, taxes, and recording fees) Some settlement costs are negotiable as to whether the buyer or the seller pays, and this is determined at the time of executing the purchase agreement.
