Closing costs include a variety of fees for services that are needed to get your loan executed. Both buyers and sellers pay for closing costs when you’re purchasing a home, but the amount each party pays will depend on several factors. These range from the location of the sale, your loan program, and sometimes even because of the current market conditions.
These fees cover various services required to finalize your loan. They fall into these basic categories:
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Loan-related fees:
Application fee, mortgage discount points, prepaid interest, attorney fees, and loan origination fees.
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Property-related fees:
Appraisals, survey costs, and home inspections.
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Tax closing costs:
Fees paid to state and local governments, fees to establish and transfer ownership of the property, property taxes, and escrow funds.
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Insurance closing costs:
Homeowner’s insurance policies, private mortgage insurance, and title insurance.
Source:https://fhmtg.com/2022/01/27/who-pays-for-closing-costs/#0-what-fees-make-up-closing-costs
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