Closing costs or settlement costs are an accumulation of separating charges paid to different entities for the professional services associated with the buying and selling of real estate.
Below are a few items associates with closing costs:
- Title Insurance Premium: Fee paid by an individual to ensure he has a marketable title or (in case of a lender) to ensure its lien position.
- Real Estate Commission: Fee paid to a real estate company for services rendered in listing, showing, selling and consummating the transfer of property.
- Transfer and Assumption Charges: Fees charged by a lender to allow a new purchaser to assume an existing loan.
- Recording Fees: Fees assessed by a county recorder’s office for recording the documents of a real estate transaction.
- Loan Fees: Fees charged by a lender in connection with the processing of a new loan. These may include points, origination fee and credit report.
- Additional Settlement: Taxes, insurance, impounds and interest proration and termine inspection fees.
At any time you have questions about these fees, an escrow officer will review and explain your questions before you finalize your transaction and take ownership of your property.
Source: Ticor Title
