What are Closing Costs?

Closing CostsIf you don’t know what are closing costs and you are going to buy a house, then you must know it before buying one. Closing costs are associated with a property and you must pay those at the time of closing of a real estate transaction. You can assume the word “Closing” as a point in real estate, where the property is handed over from seller to buyer.

How much are closing costs?

Closing costs vary from region to region and depend upon the area in which you are buying a property. However, following is the list of fees which are included in closing costs:

Application Fee:-

When you apply for a property, you must pay an application fee to the lender. This fee may include checking for your credit card and may vary from lender to lender.

Appraisal Fee:-

As the name suggests, this fee is paid to an appraisal company to ensure the fair market value of the property.

Attorney Fee:-

In order to verify documents on the behalf of either seller or buyer, you need to pay to the attorney.

Escrow Fee:-

This fee is paid to the 3rd party escrow for closing. The escrow reviews the overall closing and makes sure both seller and buyer get what they supposed to get.

Courier Fee:-

This fee is for transporting documents.

Recording Fee:-

This is the fee which you need to pay to your local record officer to record your property in local listings.

Exam Fee:-

This is the fee that will be paid to the third party for thoroughly examining the property’s record. The third party makes sure that the property you are going to buy has no other owner.

Insurance Fee:-

This is the fee for insurance in case of any damage to the house and you must pay it at the time of closing.

 

Conclusion:-

Before buying a house, it is important to know what are closing costs and what types of fees are included in it. So keep in mind the fees mentioned above when paying closing costs.

 

 

 

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