What are the Costs at Closing?

What are the Costs at Closing?

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Both buyers and sellers are responsible for costs incurred at the closing of a property. If this is your first real estate transaction, you’ll want to familiarize yourself with what you will be responsible for paying at closing.


There are more costs to the buyer; however, they usually pay less than the seller. Early in the process, the buyer will receive a “Truth in Lending” statement. The “Truth in Lending” statement details all of the expenses the buyer will be responsible for when buying a home.

There are other expenses associated with buying a home like homeowner’s association dues, (if applicable) and property taxes.

When the buyer purchases a home, some expenses will be pro-rated, such as property taxes when you close towards the end of the property tax period.

Costs you can expect to pay at closing include:

  • Origination fee
  • Appraisal fee
  • Flood certification fee
  • Prepaid insurance
  • Prepaid interest
  • Bank processing fee
  • Credit report fee
  • Tax servicing fee
  • Recording fee
  • Title insurance
  • Notary fee


The biggest fee for sellers at closing is the real estate commission fee, which is based on the total sales price of the property. Sellers can negotiate fees and charges during the real estate transaction.

For both buyer and seller, a good real estate agent is an asset during their real estate transaction process as there are possible negotiations throughout the buying and selling transaction that both buyer and seller can benefit. A good real estate is also a great negotiator!

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