Closing costs are fees buyers often pay related to the purchase of a home. Typical closing costs include things like:
- Mortgage origination fees or loan discount points paid to a lender.
- Fees for any required survey, appraisal or inspection.
- An escrow deposit for property taxes, private mortgage insurance, and homeowners insurance.
- A fee your lender may charge to run your credit report.
- A title search fee – and a fee for title insurance.
- A recording fee paid to your city or county for them to record the new land records.
- Prorated mortgage interest from the date of the closing to your first mortgage payment.
Closing costs can vary so be sure to ask your lender for specifics. By law, lenders are required to provide a good faith estimate of what closing costs will be within three days of when you apply for a loan.
