Closing costs are fees that are charged to you when purchasing a home. They consist of loan fees, property appraisal, lender title insurance costs, title research fees, property recordation fees, personal credit report, and lender escrows for property taxes and home owner insurance fees. Other items that you or your lender may request such as radon or home inspections or survey may also be a part of your closing costs.
When you apply for a loan for a property, the lender will furnish you with a Truth in Lending Disclosure. This form will have all fees that will be charged to you as closing costs, itemized, and should be fairly accurate. With the exception of a credit report fee and/or the appraisal, all closing costs will be paid at the settlement table on the day of closing. If you choose to have a home inspection or other inspections, these fees may be charged at the time the service is rendered.
All fees paid on the day of settlement must be paid with a cashier’s check or wired funds. No personal checks are accepted by the settlement agent.
