Buyer's Closing Costs

Listed below are some typical closing costs you may incur as part of your real estate purchase
transaction. When you apply for a loan, you will receive a Good Faith Estimate of closing costs
and settlement charges.
This is a one-time fee that pays for an appraisal. The appraisal is made by an independent fee appraiser.
Credit Report
A fee that covers the cost of the credit report.
Document Preparation
There may be a separate fee that covers the preparation of the final legal papers.
The third party settlement agent who safeguards the funds and documents for the buyer and seller, and
disburses funds and records documents when all terms of the contract have been met.
Loan Discount
A fee used to adjust the yield on the loan to what market conditions demand. It is often referred to as "points".
Loan Origination
The lender's administrative costs in processing the loan. This fee covers the loan.
Title Charges
The Title Company charges fees for a title search, title examination, recording fees, endorsement fees, a
settlement or closing fee and notary fees.
Prepaid Interest
Depending on the time of the month your loan closes this per diem charge may vary from a full month's interest
to that of a few days. If your loan closes at the end of the month, you will have to pay interest only for a few
days or so.
Taxes & Insurance
You may be required to reimburse the Seller for property taxes, depending on
the month in which you close. You will also need to pay a year's hazard insurance
premium up front. Also, you might be required to put a certain amount for taxes
and insurance into a special reserve account held by the lender.