How are closing costs determined?

The following factors all sum up the closing costs:

  • Attorney’s/Escrow fees for both the parties if applicable
  • Fees for documentation preparation
  • First payment to escrow account with respect to real estate taxes and insurance in future
  • If applicable, the first premium of mortgage insurance
  • Interest to be paid from closing date to 30 days before the first monthly payment
  • Loan discount points
  • Loan origination fee covering lender’s administrative cost
  • Paid receipt for homeowner’s insurance policy or/and to fire and flood insurance
  • Property taxes covering the tax period till date
  • Recording fees
  • Survey fee
  • Title insurance for both the parties
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