Key Points
- Closing costs are paid by the homeowner once the property has been transferred from the seller to them
- They include any miscellaneous fees that were accumulated during the “real estate transaction.”
- Costs will vary depending on the location of the property and the type of loan you applied for, but it’s a good idea to set aside around two to five percent of the purchase price of your house for closing costs.
Didn’t I already buy my house?
Kind of. While your mortgage covers the costs of the home, it doesn’t cover any miscellaneous fees that were accumulated during the “real estate transaction.” Closing costs are paid by the homeowner once the property has been transferred from the seller to them.
While costs will vary depending on the location of your real estate purchase and the type of loan you applied for, it’s a good idea to set aside around two to five percent of the purchase price of your house for closing costs.
What exactly is included in closing costs?
Here is a list of everything that could be included in your closing costs:
- Application fee
- Credit Report fee
- Appraisal fee
- Attorney fee
- Closing/Escrow fee
- Home Inspection fee
- Homeowners Insurance
- Property Transfer Tax
- Property Taxes
- Origination fee
- Underwriting fee
- Survey fee
- Title Search fee
- Private Mortgage Insurance
- Homeowners Association Transfer fee
- Title Insurance
- Pest Inspection (required in some states)
- Prepaid interest
- Wire Transfer fees
- Flood Insurance (if property is in a flood zone)