Typical closing costs include lender fees, attorney fees, title insurance, hazard insurance, and recording fees. These fees are disclosed to you in advance. You should get what is called a good faith estimate of your closing costs within 3 days of applying for the loan. After the contract of sale is finalized, the HUD-1 is one of the most important documents as it tells you all about the money. It documents who gets what and how much.

Some costs are in the closing statement and others are outside. To give you a better example of a typical closing lets try to separate them. Usually all of the costs inside the closing statement are split evenly or equally between the buyer and seller. If the seller will receive all cash at the closing, they would include the closing attorneys fees of approximately $1500.00, which is the norm for the average closing.

Typically closing costs will run around 3% of the sales price, which is an approximate figure. Fortunately, our homes have excellent value and, as mentioned before, appraise for much more than the sales price. This allows you to work into the sales price additional costs you may need help with.

Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, these charges are rolled into the loan, they must be paid when the home is closed.

If advertisements said "Higher Interest Rate? You Pay No Closing Costs," they would be more accurate. One of the choices you have when selecting your mortgage is the option of financing the cost to obtain your loan by paying a higher interest rate for the life of your loan and letting your lender write the check at closing to pay the fees. As an example, if you select a $100,000 mortgage with an interest rate of 8.5%, the costs involved with the closing will be approximately $2,500.

Studies show that the closing costs, which can average 2 to 3 percent of a total home purchase price, are often more costly than many buyers expect. But there are some ways to save: Negotiate with the seller to pay all or part of the closing costs. The lender must agree to this as well as the seller. Get a no-point loan. The trade-off is a higher interest rate on the loan and many of these loans have prepayment penalties.

Closing costs are either paid by the home seller or home buyer. It often depends on local custom and what the buyer or seller negotiates.

There may be closing costs customary or unique to a certain locality, but closing costs are usually made up of the following: