Definition
Closing costs are all fees paid by either the buyer or seller (or both) at closing.
Analysis
Closing costs can represent a substantial barrier to a homebuyer with limited savings. Normally closing costs add up to a few thousand dollars that must be paid upfront.
Closing costs may include:
- Points
- Inspection fee
- Appraisal fee
- Survey fee
- Title search
- Title insurance
- Warranties
- Mortgage application fees
- Fire insurance prepaid for 1 year
- Commission to real estate agent(s)
