What are closing costs?

 

 

Closing costs (also known as settlement costs) are expenses above and beyond the price of the property that the buyers and sellers have to pay when transferring ownership of a property. That includes: 

 ✔️loan origination fee, 

  • ✔️the cost of the title search ("title" is the legal term for one's ownership interest in land),
  • ✔️✔️notary fees, 
  • ✔️attorney's fee 
  • ✔️taxes, 
  • ✔️Cost of the property survey . 
  • ✔️Your total closing cost will depend on your location and you can get an estimate from your lender and REALTOR. When your mortgage is finalized, you as the buyer will have to pay closing costs. Most lenders will not roll the costs into the mortgage, so they're essentially "out-of-pocket" or "up-front" fees that will need to be covered. Along with the basic title, service, and lender fees, closing costs include payments in advance for such items as taxes, property insurance, and interest to the end of the month. Some closing costs, such as recording fees and taxes, title examination and credit reports, may be paid by the seller, or they may be shared between the borrower and the seller, depending on the terms of the sales contract.