Definition:
The amounts that are charged by lenders and institutions in order to complete the transfer of ownership for real estate and other large pieces of property. Usually closing costs include the origination fee, taxes, escrow and filing fees, attorney's fees, survey and inspection costs, and title insurance. The costs can be divided into one-time payments such as the attorney's fees and the cost of home inspection, and recurring payments such as property taxes and homeowner's insurance. Depending on your area, closing costs can vary between ~3-5% of the total cost, though sometimes owners will offer to pay all or a portion of the closing costs as an inducement to buyers. The lender usually provides the buyer with a good-faith estimate of total costs, including closing, within three days of a home loan application being received.
