Buying A Home Home Loans

Mortgage Closing Costs Explained

Written by Rebecca Lake

Buying a home involves a lot of steps and you can’t afford to be caught off guard at the last minute. Factoring in how much you’ll have to pay at closing is a smart move but many home buyers are clueless about what that involves. In a survey from ClosingCorp, more than a third of buyers admitted to drawing a blank on what closing costs are. If you’re ready to become a homeowner, here’s a quick primer on what you’re expected to pay.

What are mortgage closing costs for?

Broadly speaking, closing costs refer to the various fees that are required to complete your home-buying transaction. Some of the most common costs you may have to pay at closing include:

  • Credit check fees
  • Loan application fee
  • A percentage of your property taxes and insurance if you’re escrowing these costs into your loan
  • Homeowner’s association fees if you’re subject to HOA rules and are escrowing these costs
  • Escrow fees
  • Upfront mortgage insurance premiums (Required if you’re putting less than 20% down on a conventional loan or getting a federally-guaranteed mortgage, such as an FHA or USDA loan)
  • Home warranty if you’re purchasing one
  • Title fees
  • Title insurance
  • Loan origination fee
  • Attorney’s fees
  • Notary fee
  • Document preparation fees
  • Mailing fees

About the author

Rebecca Lake

Rebecca Lake is a personal finance writer and blogger specializing in topics related to mortgages, retirement and business credit. Her work has appeared in a variety of outlets around the web, including Smart Asset and Money Crashers. You can find her on Twitter at @seemomwrite or her website,

1 Comment

  • Is there any other place or person or organization willing to gift a down payment to
    a person whom has no family to turn to for a gift ? As such as a family member may be as bad or worse off financially ,,,,

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