Home-buyer, You do the right thing, contact a lender, find the best realtor for you and start the home search. All of the sudden these key words are being thrown around while you stand there wondering "is this a dumb question, what are my closing costs???"


The fees required to complete your real estate transaction paid at closing. Your lender will be able to get you a complete list of closing cost items, which include points, taxes, title insurance and more. Buyer closing costs are usually between 2% to 6% of the home’s purchase price.

Example of closing cost are:

  • Appraisal fee
  • Application fee
  • Credit report and credit supplement fees
  • Mortgage origination fee
  • Lender’s policy title insurance (plus optional owner’s policy title insurance)
  • Closing attorney fee (in some states)
  • Courier fee
  • Bank processing fee
  • Recording fee
  • Notary fee
  • Loan discount points
  • Homeowners association transfer fees
  • Homeowners insurance
  • Property taxes and tax servicing fees (including a prepaid lump sum)
  • Mortgage insurance for down payments worth less than 20% of the purchase price (MIP/PMI)
  • Flood certification fee (in some areas)

You can negotiate as part of your offer the seller paying a portion of your closing costs, depending on the market at that time.


There I go throwing around more key words, never fear I will be explaining these terms next....

Be well, have a wonderful day!