What are home buyer closing costs?
As a home buyer, closing costs are processing fees you pay to your lender. Lenders charge these fees in exchange for creating your loan. Closing costs cover things like your home appraisal and searches on your home’s title. The specific closing costs you’ll need to pay to depend on the type of loan you take and where you live.
Besides closing costs, you should also take into account other costs like inspection and insurance. Check out our video for a quick explanation and breakdown of what you should expect to pay beyond your downpayment.
Before heading to the closing table, expect to pay for the following items at the beginning phase after your offer is accepted.
- Inspection
- appraisal
- title search
- attorney fee
- home insurance
- title insurance.
As you get closer to closing, your additional fees will be:
- application fee
- origination fee
- underwriting
- credit report
- flood insurance (if needed)
- courier/shipping cost
- wire transfer
- mortgage insurance.
- Along with sellers prepaid items like taxes and heating oil
- putting money into escrow.