Closing Costs
What Are They?
 Closing costs or settlement costs are an
accumulation of separate charges paid to different
entities for the professional services associated with the
buying and selling of real
estate.
Some of the items associated with closing
costs are:
-
Title Insurance Premium.
Fee paid by an individual to insure he has a
marketable title or - in the case of a lender -
to insure their lien position.
-
Real Estate Commission. Fee
paid to a real estate company for services
rendered in listing, showing, selling and
consummating the transfer of property.
-
Transfer and Assumption
Charges. Fees charged by a lender to
allow a new purchaser to assume an existing
loan.
-
Recording Fees. Fees
assessed by a county recorder's office for
recording the documents of a real estate
transaction.
-
Loan Fees. Fees charged by
a lender in connection with the processing of a
new loan. These may include points,
origination fee and credit report.
-
Escrow Fees. Fees charged
by a title and/or escrow company for services
rendered in preparing documents necessary in
consummation of a real estate
transaction.
-
Additional Settlement.
Taxes, insurance, impounds, and interest
prorations; termite inspection fees.
An agent will be happy to review the above and
other closing costs with you and explain them before you
finalize your transaction and take ownership of your
property.
Title Insurance
Just how much is the title insurance going to
cost you? Not as much as you probably think.
Only a small percentage of closing fees are actually for
title insurance protection. Title insurance is less
than 1 percent of the purchase price of your
property.
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