Typical Real Estate Closing Costs Related to Loans and
Mortgages
Lenders are required to provide buyers with a good-faith estimate of their closing costs.
The fees vary according to several factors, including the type of loan they applied for
and the terms of the purchase agreement.
Typical Buyer Closing Costs - The down payment, Loan fees (points,
application fee, credit report), Prepaid interest, Inspection fees, Appraisal, Mortgage
insurance, Hazard insurance, Title insurance, Documentary stamps on the note.
Typical Seller Closing Costs - If the seller has not yet paid for the
house in full, the seller's most important closing cost is satisfying the remaining
balance of their loan. Before the date of closing, the escrow officer will contact the
seller's lender to verify the amount needed to close out the loan. Then, along with any
other fees, the original loan will be paid for at closing before the seller receives any
proceeds from the sale.
Other seller closing costs can include: Transfer taxes, Documentary Stamps on the Deed,
Title insurance, Broker's commission, Property taxes (prorated)
Certain fees are automatically assigned to either the buyer or the seller; other costs are
either negotiable or dictated by local custom. |
