How Much Are Typical Closing Costs? What Home Buyers and Sellers Can Expect
How much are typical closing costs for a buyer? These are the fees paid to third parties that help facilitate the sale of a home, and they vary widely by location.
How much are typical closing costs for buyers?
- Home buyers pay the majority of closing costs since many of these fees are associated with the mortgage.
- A loan origination fee, which lenders charge for processing the paperwork for your loan.
- A fee for running your credit report.
- A fee for the underwriter, who assesses your credit worthiness.
- A fee for the appraisal of the home you hope to own to make sure its value matches the size of the loan you want.
- A fee for the home inspection, which checks the home for potential problems from cracks in the foundation to a leaky roof.
- A fee for a title search to unearth any liens on the property that could interfere with your ownership of it.
- A survey fee if it’s a single-family home or townhome (but not condos)
- Taxes, also called stamp taxes, on the money you’ve borrowed for your home loan.
How much are closing costs for sellers?
Here are the closing costs that sellers are typically responsible for:
- A closing fee, paid to the title company or attorney’s office where everyone meets to close on the home.
- Taxes on the home sale.
- A fee for an attorney, if the home seller has one.
- A fee for transferring the title to the new owner.
To estimate your closing costs, plug your numbers into an online closing costs calculator, or ask your Realtor, lender, or mortgage broker for a more accurate estimate. Then, at least three days before closing, the lender is required by federal law to send buyers a closing disclosure that outlines those costs once again. (Meanwhile sellers should receive similar documents from their Realtor outlining their own costs.)
For informational purposes only