Closing costs are fees paid at the closing of a real estate transaction, typically 2-5% of the home's purchase price. They include lender fees, title insurance, appraisal, inspection, and recording fees.
Both parties pay closing costs. Buyers typically pay 2-5% (loan-related fees, title insurance, inspections). Sellers typically pay 6-10% (agent commissions, transfer taxes, title insurance).
Yes, some closing costs can be financed into your loan, but you'll pay interest on them. Alternatively, negotiate seller concessions or look for lender credits to cover costs.
For buyers, the biggest costs are typically the down payment and lender origination fees. For sellers, real estate agent commissions (5-6% of sale price) are usually the largest expense.
Shop around for lenders, negotiate seller concessions, close near month-end (less prepaid interest), ask for lender credits, and compare title insurance and settlement service providers.
Closing costs are due at the closing table when you sign final paperwork. You'll need to bring a cashier's check or arrange a wire transfer for the total closing amount.