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Who Pays Closing Costs?

Updated: May 25, 2023

Closing costs are all of the fees and expenses that buyers and sellers must pay on closing day and it is extremely important part of the closing process, but who pays for what?

couple looking over closing cost paperwork

Closing costs are paid based on the terms of the home purchase contract, which both mortgage parties agree on. The buyer’s closing costs are the most substantial, but the seller is often responsible for some closing costs as well. As in many contractural agreements closing costs can also be open to negotiation. While closing costs for sellers are often deducted directly from the home sale proceeds, buyers typically pay their portion out of pocket so it is best to be prepared.

While the contract dictates who pays what, here is a general breakdown of what buyers and sellers typically pay for in closing costs to help all parties save up and prepare for closing day.

  • Attorney Fees

  • Appraisal

  • Property Inspections

  • Termite Inspection Survey

  • HOA Transfer Fee

  • Prorated Taxes

  • Half of Escrow Fee

  • Courier Fee

  • Hazard Insurance

  • Loan Origination Fee

  • Loan Title Policy and Endorsements

  • Homeowners Insurance

  • Credit Report

  • Prepaid Interest

  • Document Preparation

  • Recording Fees

  • VA Funding Fee

  • Initial Deposit for Escrow Account

  • Mortgage Insurance Premium

  • Payoff of Existing Loan

  • Realtor Commissions

  • Owner’s Title Policy and Endorsements

  • Repairs

  • Prorated Taxes

  • Half of Escrow Fee

  • Courier Fee

  • Tax Certificate

  • Document Preparation

  • Recording Fees

  • Survey

  • Termite Inspection for VA Loans

  • HOA Resale Certificate

  • Home Warranty

To sum things up if you’re buying or selling real estate you’ll need to budget for closing costs in addition to your down payment. These costs can vary based on the loan you choose, so it’s important to be aware of this when you shop around for your mortgage. Still have questions on closing costs? Not sure what mortgage lender to use? Contact our Willow Bend Title team. We work closely with reliable lenders who are experts in their field and eager to help you be fully prepared for closing day.


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