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