Closing costs are the fees and expenses required to finalize a mortgage or real estate transaction. These costs are paid at closing and are in addition to the down payment. The specific closing costs youll need to pay depend on the type of loan you take and where you live. The average closing costs for the buyer run between about 2% and 6% of the loan amount. Here is a list of typical closing costs:
- Application fee
- Credit check fee
- Origination fee
- Underwriting fee
- Appraisal fee
- Property survey fee
- Title search fee
- Title insurance policy
- Attorney fee
- Discount points
- Prepaid homeowners insurance premiums
- Escrow deposit for property taxes and insurance
When buying a home, you can comparison shop and negotiate some of the fees to lower your closing costs. And some states, counties, and cities offer low-interest loan programs or grants to help first-time home buyers with closing costs. Lenders place limits on how much sellers can contribute toward the buyers closing costs, depending on the type of loan.
