Common Closing Costs for Buyers

Lenders are required to disclose a good faith estimate of all settlement costs. Payments made at closing are generally required to be either Cashier’s Checks or Money Orders. The title company or other entity conducting the closing will tell you the required amount for:

• Down payment.
• Loan origination fees.
• Points, or loan discount fees you pay to receive a lower interest rate.
• Appraisal fee.
• Credit report. (often paid at the time of loan application)
• Private mortgage insurance premium.
• Insurance impound for homeowners insurance, if being paid as part of the mortgage.
• Property tax impound, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
• Deed recording fees.
• Title insurance policy premiums.
• Inspection fees—pest and building inspections, etc.
• Notary fees.
• Prorations for your share of costs such as homeowner’s associations (HOA) and property taxes.

What to Keep From Your Closing
We suggest you keep everything you were given at closing in a file stored in a safe and easily accessible place. You will most likely need to reference much of it in the future for such events as refinancing your home and/or calculating income tax deductions.