What are closing costs and how expensive are they?

Closing costs are fees, and charges associated with purchasing a home. These are fees on top of the down payment. These fees include things like:

·         Appraisal fees

·         Title fees

·         Government taxes

·         Recording fees

·         Lender fees

·         Prepaid costs, such as property taxes and homeowners’ insurance

Buyers typically pay their own closing costs. However, buyers and sellers can come to an agreement where the seller assumes some (or all) of the buyers closing costs. This is called “seller concessions”. On a typical loan closing fees will be somewhere between 2-3% of the purchase price of the home.