Closing Costs for Buyers

The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

Down payment
Loan origination fees (Points, or loan discount fees, you pay to receive a lower interest rate)
Appraisal fee
Credit report
Lenders' processing fee
Lenders' under-writing fee
Tax service fee
Insurance tracking fee
Flood zone certification
Private mortgage insurance premium
Insurance escrow for homeowners insurance, if being paid as part of the mortgage
Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
Title insurance policy premiums
Title search
Title Company / Attorney fees
Deed recording fees
Government transfer tax
Survey
Inspection fees—building inspection, termites, etc.
Notary fees
Pro-rations for your share of costs, such as utility bills and property taxes

A Note about Pro-rations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Pro-ration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.