What is Closing Cost?
The expenses that buyers and sellers incur over and above the price of the property, when they complete a real estate transaction is called as Closing Cost.
Costs like loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges may be included in the category of closing costs. Costs such as property taxes and homeowners' insurance are the prepaid costs that can recur. As per the Real Estate Settlement Procedures Act (RESPA) a ‘good faith estimate’ a lender is required by law to state these costs within three days of taking your home loan application. Similarly at least three days before the closing of the loan the lender is supposed to provide an outline of all closing fees in a closing disclosure statement.