Common Closing Costs
for Buyers


The lender must disclose a good faith estimate of 
all settlement costs. A check to cover your 
closing costs will probably have to be a cashier’s 
check. The title company or other entity conducting 
the closing will tell you the required amount for:

· Downpayment. 
· Loan origination fees. 
· Points, or loan discount fees you pay to receive 
  a lower interest rate. 
· Appraisal fee. 
· Credit report.
· Private mortgage insurance premium. 
· Insurance escrow for homeowners insurance, if 
  being paid as part of the mortgage. 
· Property tax escrow, if being paid as part of 
  the mortgage. Lenders keep funds for taxes and 
  insurance in escrow accounts as they are paid 
  with the mortgage, then pay the insurance or 
  taxes for you. 
· Deed recording fees. 
· Title insurance policy premiums. 
· Survey. 
· Inspection fees—building inspection, termites, etc. 
· Notary fees. 
· Prorations for your share of costs such as 
  utility bills and property taxes. 


A Note About Prorations. Because such costs are 
usually paid on either a monthly or yearly basis, 
you might have to pay a bill for services used by 
the sellers before they moved. Proration is a way 
for the sellers to pay you back or for you to pay 
them for bills they may have paid in advance. For 
example, the gas company usually sends a bill each 
month for the gas used during the previous month. 
But assume you buy the home on the 6th of the 
month. You would owe the gas company for only the 
days from the 6th to the end for the month. The 
seller would owe for the first 5 days. The bill 
would be prorated for the number of days in the 
month, and then each person would be responsible 
for the days of his or her ownership.
Go Back To Buyer's Tips Index
Go To Homepage
Common Closing Costs for Buyers

Common Closing Costs
for Buyers
