What Are Real Estate Closing Costs?

Real Estate Agent with Keller Williams Realty - Denae Judd & Associates

What Are Real Estate Closing Costs?

If you are thinking of buying a home it’s important you get educated about the home-buying process. Closing costs are the expenses that you, as the buyer, will incur during your real estate transaction. Closing costs vary depending on the lender and title companies you choose.



What fees are included in Closing Costs?

Closing costs are also negotiable and may be paid for by another party. Closing costs can be made up of these fees, but are not limited to:

  • Credit report fee: The mortgage company may or may not charge you a fee for running your credit.
  • Loan Origination fee: Cost of processing the loan paperwork
  • Attorney fees: Fees incurred for your closing attorney
  • Discount points: Fees paid in order to reduce your interest rate
  • Home inspection fee
  • Appraisal fee: The lender will require an appraisal before issuing a loan on a property.
  • Survey fees: If you opt to receive a survey to verify property lines, this will be a charge to you
  • Title insurance: this policy protects the lender
  • Title search:  a background search done on the property to make sure there aren’t any liens on the property or unpaid mortgages
  • Escrow deposit: A deposit that is rolled into the loan to pay for property taxes and insurance that the lender may be asked to pay as part of the mortgage
  • Termite inspection fee
  • Recording fees: This covers fees that are charged by city, county or state governments for any filings and recording of the transfer of the deed
  • Home warranty
  • Pro-rated taxes, insurance and fees: These fees will cover anything that is owed by either party due to the timing of the closing. For example, if the seller has already paid for property taxes for the year, the buyer now owes a portion of that and that will be charged to them here.
  • Admin fee: an admin fee may be charged by your realtor’s brokerage to cover the maintenance and storage of your home buying records for at least seven years after closing as required by VA law

Can you avoid paying for Closing Costs?

As mentioned before, closing costs are completely negotiable. In some cases the seller will pay for the buyer's closing costs.  Also, there are different loan programs that may not require you to pay any closing costs.

For more information regarding closing costs or if you're interested in purchasing a home, give us a call 703-596-8889. We would love to help!

If you, or someone you know, is looking for a Realtor who specializes in Northern VA real estate, feel free to give us a call today at (703) 596-8889! Denae Judd & Associates knows the market inside and out and we would love the opportunity to serve you.

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