Other Buyer Costs

There are other costs associated with the closing that are typically paid by the buyer. They often include:

-- Fees paid to the lender: Loan discount points, loan origination fee, credit report fee, appraisal fee, and assumption fee.
-- Advance payments or prepaid fees: Interest, mortgage insurance premium, and hazard insurance premium.
-- Escrow accounts or reserves: State and local law and lenders' policies vary but these reserves may have to be set up if the lender will be paying property taxes, mortgage insurance, and hazard insurance.
-- Title charges: Closing (or settlement) fee, title insurance premium, title search, document preparation fees, and attorney fees. The fees the buyer pays for a real estate attorney are not part of settlement procedures.
-- Recording and transfer fees: States often impose a tax on the transfer of property. The payment of a fee for recording the purchasing documents may be required.
-- Additional charges: Surveyor's fees, termite and other pet infestation inspection fees, and the cost of other inspections required by the lender.
-- Adjustments: Items paid by the seller in advance and items yet to be paid for which the seller is responsible. The most common expense is property taxes, but others may have to be addressed.

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