06/02/2026
What Are Closing Costs?
Closing costs are the expenses paid at the end of a real estate transaction to finalize the mortgage and transfer ownership of the property. These costs are separate from your down payment and typically include:
• Lender fees
• Appraisal fees
• Credit Report fees
• Title search and title insurance
• Recording and transfer fees
• Prepaid property taxes
• Homeowners insurance premiums
• Escrow account funding
Closing costs can vary based on the loan program, purchase price, and location of the property. Understanding these costs early in the homebuying process can help buyers better prepare financially and avoid surprises at closing.
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