What's Included in Closing Costs?

October 2, 2018
Author: New England Home Mortgage

What are Closing Costs?

Closing costs are a variety of lender and third-party fees on top of the purchase price of the home. The down payment is usually the main concern for home buyers, but it is equally important to equate closing costs into your budget. Many lenders will look into your finances to make sure you have enough to cover closing costs on top of the down payment. Closing costs typically range between 2% and 5% of the purchase price of the home, so it is important to be sure you have enough set aside to close the deal.


What is included in Closing Costs?

What is included in closing costs can vary, but fees will include both recurring and non-recurring costs for a buyer.


Recurring fees are ones that you will continue to pay as a homeowner, a portion of which is due at closing. Typical recurring costs include:

  • Homeowners insurance
  • Property taxes
  • Prepaid loan interest
  • Flood insurance (if required in your area)
  • Mortgage insurance premiums


Non-recurring fees are paid one time only. These include:

  • Title search and policy
  • Home inspection fees
  • Appraisal fee
  • Attorney fee
  • Lender fees
  • Property survey fees
  • Courier and delivery
  • Notary
  • Credit report


Who pays for Closing Costs?

Buyers and sellers both have closing costs, and they can sometimes be negotiated. Sellers are typically responsible for paying the real estate agent’s commission, which is typically the biggest fee at the closing table. Buyers are responsible for the recurring and non-recurring costs listed above. As a buyer, you can ask a seller to pay for some of the closing costs in your negotiations.

A mortgage professional at New England Home Mortgage will go through every costs with you so you understand how they apply to your loan.


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