Closing costs is a broad term used to describe the expenses incurred when property is sold. There can be significant expenses for both the buyer and the seller. Buyer closing costs can include lender fees, transfer taxes on your mortgage, recording Fees for mortgage, title insurance and endorsements, appraisal, survey, inspections, HOA charges (if applicable) and pre-paid taxes and insurance to be held in escrow for you bank to pay out when due. Most of these would still be due even when paying cash – only the mortgage related expenses would not be relevant. In certain cases, some or all buyer closing costs can be negotiated within the contract with the seller.
Posted in: FAQ for Buyers