Understanding Closing Costs

Closing escrow can be confusing in itself; never mind the crazy terminology. But, it’s also difficult to understand who pays what, the buyer or the seller. This can vary depending on if the purchase is cash, or financed. Then, if financed, is the loan FHA, Conventional or VA. In general, the Buyer pays for items such as the down payment, the property inspection, the credit report, new loan origination fees, etc. The seller pays for items such as the existing loan payoff, HOA disclosure fee, realtors’ commissions, etc. In addition, some items are negotiable or split, such as HOA transfer fees, home warranty premiums, etc. For an-easy-to-understand chart, please click the link below. And remember, use an exclusive buyers agent to protect your interests when buying a home!

Download: Closing Costs: Who Pays What?