Once your offer is accepted and your loan is moving forward, there is one final step before the keys are yours: closing. Closing is when ownership of the property is officially transferred from the seller to the buyer. During this process, buyers sign the final documents, bring any required funds to closing, and pay certain costs connected to the purchase. In addition to the purchase price, buyer closing costs may include several fees and expenses needed to complete the transaction. These costs vary depending on the property, loan type, lender, title company, insurance, taxes, and the terms negotiated in your contract. Some of the most common buyer closing costs may include:

Loan Origination or Lender Fees

These are fees charged by the lender for processing and preparing your loan.

Discount Points

If you choose to pay points to lower your interest rate, this cost is usually paid at closing. Your lender can explain whether this option makes sense for your situation.

Appraisal Fee

This covers the lender-required appraisal to help confirm the home’s value.

Credit Report Fee

This covers the lender’s cost to review your credit as part of the loan approval process.

Title and Settlement Fees

These may include the title and lien search, title examination, title insurance, document preparation, settlement services, and other title-related charges such as special attorney fees.

Mortgage Insurance

If your down payment is below a certain amount, your lender may require mortgage insurance. This helps protect the lender and may be removable later, depending on your loan type and equity position.

Prepaid Interest

This is interest paid from the date you close until your first mortgage payment begins. The amount can vary depending on the day of the month you close.

Escrow Deposits for Taxes and Insurance

Your lender may require money to be placed into an escrow account for future property taxes and homeowner’s insurance.

Recording Fees and Transfer-Related Charges

These are government or county-related fees for recording the purchase documents and officially transferring ownership.

Homeowner’s Insurance, Flood Insurance, or Association Fees

Depending on the property, buyers may also need to pay for insurance premiums, flood coverage, condominium or HOA fees, application fees, or other community- related charges.

As your buyer representatives, we help you understand what to expect, review the numbers with you, and work closely with your lender and title company so there are fewer surprises along the way. In some cases, certain closing costs may also be negotiated as part of your offer through a seller credit. For a more detailed explanation of common real estate terms and fees, please visit our Glossary of Terms in Section 8.