The Closing fees are commonly split between the buyer and seller, as noted in the sales contract, so you'll want a real estate expert to help show you through your process.
Costs related to your mortgage to be paid at closing (Mortgage Clients Only)
Loan Origination Fees: This covers the administrative expenses in setting-up and processing your loan. The loan origination fee may be a percentage of the mortgage amount or a fix amount.
Points (optional): An option for the home buyer is to purchase points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $250,000 loan, 1 point would equal $2,500.
Appraisal Fee: The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted.
Credit Report: The lender uses a credit report to determine the creditworthiness of the loan applicant.
Interest Payment: Most of the time the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on April 21st. Your first monthly payment begins to accrue interest on May 1 with your first mortgage payment due June 1. At closing an interest payment covering the accrual period between April 21st and April 31st may be required.
Escrow Account: At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account.
Flood Insurance - (optional or might be required by the lender depending on zoning)
Private Mortgage Insurance (PMI) - (Depending on the type of loan obtained)
Property Taxes: Most of the time the buyer is required to pay the property taxes from the day of the purchase to the end of the year. This amount to be paid will be prorated to the seller and the buyer. If taxes are pre-paid, buyer will have to give the seller the period the house is not in their possession. Or vice versa if taxes are yet to be paid.
Transfer Taxes and Recording Fees: Transfer Taxes are usually attached with any type of transfer of ownership on title as well as recording fees. These are fees to be paid to the county where the property is located.
Inspection Fees: (if applicable)
Home Warranty: (if applicable)
Owner's Title Policy: (if applicable)
Attorney's office: Document preparation fees (Title examination, Settlement Statement, documents preparation, etc.)
Realtor’s Administration Fees: The admin fee will cover the paperwork the agent has to do on behalf of the customer outside of the contract scope (Agent/Admin who would handle the extra bank docs and processing for smoother and quicker transaction, etc.), for the document storage fee for up to 5 years of records, printing, mailing, and/or translation services. (If applicable)