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Common Closing Costs

You’ll likely be responsible for a variety of fees and expenses that you and/or the seller will have to pay at the time of closing. Closing costs and prepaid items must be paid and may be negotiated to be paid in part or in whole by the seller. Your lender must provide a good-faith estimate (GFE) of all settlement costs. The title company or other entity conducting the closing will prepare final documents that include amounts for:


  • Down payment amount
  • Loan origination fee
  • Points, or loan discount fees, which you pay to receive a lower interest rate
  • Appraisal
  • Credit report
  • Private mortgage insurance (PMI) premium or Mortgage Insurance Premium (MIP) if applicable
  • Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage as well as the first year’s premium
  • VA funding fee if applicable
  • 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 and then pay the insurance or taxes for you when the bills become due.
  • Deed and other recording fees
  • Title insurance policy premiums
  • Land survey or ILC-Improvement Location Certificate if applicable
  • Notary fees
  • Prorations for your share of costs, such as property taxes
  • Proration of HOA dues
  • Settlement or closing fee
  • Tax service fee
  • Flood certification
  • Home Warranty coverage plan