Buyer Closing Cost

You’ll likely be responsible for a variety of fees and expenses that you and/or the seller will have
to pay at the time of closing. Closing costs and prepaid items must be paid and may be
negotiated to be paid in part or in whole by the seller. Your lender must provide a good-faith
estimate (GFE) of all settlement costs. The title company or other entity conducting the closing
will prepare final documents that include amounts for:
• Down payment amount
• Loan origination fee
• Points, or loan discount fees, which you pay to
receive a lower interest rate
• Appraisal
• Credit report
• Private mortgage insurance (PMI) premium or
Mortgage Insurance Premium (MIP) if
applicable
• Insurance escrow for homeowner’s insurance, if
being paid as part of the mortgage as well as the
first year’s premium
• VA funding fee if applicable
• 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 and then pay the insurance or
taxes for you when the bills become due.
• Deed and other recording fees
• Title insurance policy premiums
• Land survey or !LC-Improvement Location
Certificate if applicable
• Notary fees
• Prorations for your share of costs, such as
property taxes
• Proration of HOA dues
• Settlement or closing fee
• Tax service fee
• Flood certification
• Home Warranty coverage plan