What are some examples of charges included in closing?​

Closing costs are various fees and expenses that buyers and sellers incur when completing a real estate transaction. These costs can vary widely based on the property location, the type of property, and the specifics of the transaction.

Here are some common examples of charges included in closing:

For Sellers:

1. Agent Commissions: Fees paid to real estate agents of both the buyer and seller.
2. Loan Payoff Costs: Including any prepayment penalties and the remaining mortgage balance.
3. Transfer Taxes: Taxes imposed by a state or local government to transfer the title from the seller to the buyer.
4. Title Insurance: Sometimes, the seller pays for the buyer's title insurance.
5. Prorated Property Taxes: Amounts owed by the seller up to the date of the sale.
6. Home Warranty: The seller might offer a home warranty to make the property more appealing.
7. Escrow Fees: Typically split between buyer and seller, these cover the cost of handling the closing.

For Buyers:

1. Loan Origination Fees: Charged by the lender for processing the new loan.
2. Appraisal Fees: Paid to appraisal companies to assess the value of the property.
3. Credit Report Fees: Costs for pulling the buyer’s credit reports as part of the loan process.
4. Title Insurance: Protects the buyer and lender in case there are problems with the title.
5. Escrow Fees: Paid to the title company or attorney for conducting the closing.
6. Home Inspection Fees: Paid to the home inspector by the buyer.
7. Property Taxes: Prorated property taxes that the buyer needs to pay at closing.
8. Homeowners’ Insurance: The first year's insurance must often be paid at closing.
9. Private Mortgage Insurance (PMI): If the down payment is less than 20%, PMI may be required.
10. Survey Fees: Costs for verifying property lines.
    

The information provided here is sourced from online resources and is intended for general knowledge and informational purposes only. It does not constitute professional advice. Sellers should consult with qualified real estate professionals or legal counsel for guidance tailored to their specific circumstances.

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