A list of some of the most common closing costs you might encounter.

I’m here today to talk to you about closing costs. As we go through our real estate transactions, a lot of times we hear about things that aren't really explained. One of those things is closing costs. 

These are fees that are accrued during the real estate transaction, and they can typically cost you 3% to 6% of the cost of your home. They depend on what type of home you're purchasing, where it's located, and the type of land that you are receiving. Here’s a list of some common closing costs you might run into:

• Application fees. These happen when you apply for a loan with your lender, who charges an application fee.

• Inspections. There are various types of inspections that you can choose to have done: home inspections, pest inspections, and fireplace inspections, just to name a few. These will all show up at closing, or you can pay them at the time of the inspection.

• Appraisal. The lender will require you to have an appraisal done to ensure the value of the home. 

• Attorney's fees. These are sometimes necessary depending on your situation.

• Title search. This is done to ensure that you have a clean title at the time of closing.

• Recording of the property. When you close, the title is recorded at the recorder's office, and that fee will also be on your closing costs.

• Taxes and transfer fees. Both buyers and sellers have to pay some of this. 

• Credit report fees. When you do apply for a loan, the lender will pull your credit to make sure that you can be approved for the loan. 

• Discount points. These have been showing up a lot lately. Discount points can be used to buy down your rate. If you do decide to do that, it will show up in your closing cost. 

• Courier fees. Signatures are required, and documents need to be transferred around. Sometimes couriers are used, and if so, it will also be part of your closing costs. 
  

I hope that clears things up a little bit and that you have a better idea of what you're seeing at closing time. If you have any questions, feel free to call or email me. I’d love to hear from you.