Closing costs are what the buyer and seller will pay as part of the escrow transaction. Some fees are negotiable between the seller and buyer as to “Who Pays What.” Below is an example of some typical closing costs which may vary from state to state.
Paid by Both or Either Party
These costs may be negotiated between the buyer and seller or shared according to local custom:
- Attorney Fees, Courier/Delivery Fees, Document Preparation
For deed(s) and other legal documents required to consummate the transaction - Settlement Agent Fees
Often split between buyer and seller depending on title company standards - Homeowner’s Association (HOA) Dues and Transfer Fees
- Notary Fees
- Recording Fees
To file legal documents with County Recorder - Property Taxes
Current Due paid by Seller and Upcoming Paid by Buyer
Buyer’s Typical Costs
These costs are commonly paid by the buyer during the loan and purchase process:
- Appraisal
One-time fee for new a loan - Credit Report
For loan application - Homeowner’s Insurance
Paid by the buyer for fire/hazard insurance - Loan Fees
Origination and processing fees charged by a lender - PMI
Some lenders require Private Mortgage Insurance - Prepaid Interest
Prorated depending on the time of month the loan closes - Lender’s Title Insurance Premium
Seller’s Typical Costs
These fees are generally paid by the seller as part of transferring the property:
- Real Estate Commission
- Disclosure Reports
Natural Hazard Report - Home Warranty and Existing Encumbrances
- Property Inspections, Pest Inspection/Correction
Termite report - Transfer Tax
City/County conveyance tax - Municipal & State requirements
- Owner’s Title Insurance Premium
