Closing Costs

Customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing; these costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application.

Source: U.S. Department of Housing and Urban Development

Costs payable by both seller and buyer at the time of settlement, when the purchase of a property is finalized. These costs can be up to ten percent of the mortgage amount and usually include but are not limited to the following:

Fees Paid to the Lender Fees Paid in Advance Other Charges
  • Origination fee
  • Discount points
  • Credit report fee
  • Appraisal fee
  • Assumption fee if loan is assumed
  • Interest from the closing date to the beginning of the 1st payment
  • Hazard insurance premium
  • Mortgage insurance premium
  • Title search and title insurance
  • Sales commissions
  • Legal and recording fees
  • Inspection and survey fees
  • Property taxes and other adjustments
  • Processing and document preparation fees

Source: Ginnie Mae