The Home Buying Process
Step 6 Of 6
Closing Time
Closing will take place at a title company, which is selected in advance as part of your purchase agreement. At the closing, you'll be reviewing and signing final documents.
Once the title is recorded, ownership will transfer to you.
Below, you will find a partial list of standard fees you and others may be responsible for paying at closing.Fees At Closing
Buyer's Fees
Here is an estimated list of fees you should typically expect to pay at closing; these may vary depending on your circumstances.
- Credit Report: Prepared by an independent provider to establish your credit rating.
- Appraisal: Completed by an independent appraiser, to establish the value of the house.
- Inspection: Completed by an independent home inspector, to provide information about the integrity of the house.
- Title: Insures your interest in the property.
- Recording Fees: To record the transfer of property with the appropriate government agencies.
- Courier Fees: To cover the cost of transporting documents between the escrow service and various other entities.
- Loan Origination Charges: Fees charged by a lender to cover certain expenses in connection with making a real estate loan, such as underwriting and document preparation.
- Discount Points: Prepaid finance charges tied to lowering the interest rate (the higher the interest rate, the lower the discount points.)
- Escrow/Title Services: Fees associated with securing a clear title and property acquisition.
- Seller's Fees
Here is a list of fees the seller should typically expect to pay; these may vary depending on your circumstances.
- Escrow services (seller's portion)
- Title Insurance (based on purchase price)
- Recording fee
- Real estate commissions
As part of your Purchase and Sale Agreement, you can ask the seller to pay your closing costs and prepaid items. Please be aware that lenders may have limitation on the amount of seller contributions typically 3 to 9 percent, depending on the loan to value.
There may be other documents required, depending on your circumstances, which could create additional costs.
- Water and sewer certification. If your new home is not on municipal and sewer facilities, a certification may be ordered through your local health department to save you money.
- Pest inspections
- Zoning compliance letter
- Homeowner's association fees
- Mortgage insurance
- Survey
