The closing fees are costs above or outside the price of the property normally incurred by buyers and sellers to conclude a property transaction. These costs may include the credit originating fees, discounts, assessment fees, searching fees, insurance coverage, surveys, taxes, recording fees and credit report fees.
So what are closing costs?
According to the Investopedia team, "Closing costs are the expenses over and above the property's price that buyers and sellers usually incur to complete a real estate transaction.
Those costs may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges.
The lender is required by law to show these costs in a loan estimate form within three days of a home loan application. Gifts of equity (real estate sales to a relative or close friend at a below-market price) can also incur some closing costs."
In addition, there are needs to remember:
"First, Closing costs are fees due at the closing of a real estate transaction in addition to the property's purchase price. Both buyers and sellers may be subject to closing costs.
Second, examples of common closing costs include fees related to the origination and underwriting of a mortgage, real estate commissions, taxes, insurance, and record filing.
Third, closing costs must be disclosed by law to buyers and sellers and agreed upon before a real estate deal can be completed."
How much are closing costs?
When a transfer is made from the seller to the buyer of the property title, closing fees occur. Closing costs can vary total dollar amounts by region and property valuation. Homebuyers normally pay for closing expenses between 2% and 5% of the purchase price.