What are Closing Costs?

Bill Nickerson's Blog

Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers in Massachusetts, closing costs will come to about $2600 plus lenders title insurance and any pre-paid items such as real estate taxes, insurance and interest. Empty Piggy Bank

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

Third Party Fees (The Hard Costs)

  • Attorney’s fees (yours and your lender’s if applicable)
  • Appraisal
  • Credit Report Fee
  • Loan origination fee (covers lender’s administrative costs)
  • Recording fees
  • Plot Plan or Survey fee
  • Title insurance (yours and your lender’s)
  • Loan discount points
  • Any documentation preparation fees

Pre-Paid Items:

  • Property taxes (to cover tax period to date)
  • Interest (paid from date of closing to the following first of the month)
  • First payment to escrow account for future real estate taxes and insurance
    • 3…

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