Closing costs are expenses that buyers and sellers incur to complete a real estate transaction. These costs are over and above the propertys price and can vary by location and depend on the property value. In general, buyers are responsible for most of the costs, which include the origination and underwriting of a mortgage, taxes, insurance, and record filing. The specific closing costs that buyers need to pay depend on the type of loan they take and where they live. Here are some common closing costs for buyers:

• Loan origination fees: Fees charged by the lender to process a mortgage application.
• Appraisal fees: Fees charged to determine the value of the property.
• Credit report fees: Fees charged to obtain a credit report.
• Title search and insurance fees: Fees charged to ensure that the property has a clear title and to protect the buyer from any future claims against the property.
• Home inspection fees: Fees charged to inspect the property for any issues.
• Private mortgage insurance (PMI) premiums: Fees charged to protect the lender in case the buyer defaults on the loan.
• Property tax escrow: Funds kept by the lender for taxes and insurance, which are paid with the mortgage.
• Deed recording fees: Fees charged to record the deed with the local government.
• Notary fees: Fees charged to have a notary public witness the signing of documents.
• Prorations: Fees paid for services used by the sellers before they moved, such as utility bills and property taxes.

Closing costs are typically 2% to 5% of the total home purchase price. However, the total cost depends on the price of the home, its location, and whether the buyer is buying or refinancing. Buyers can negotiate with the seller to help cover closin...