Definition of Closing costs:
Closing costs are the expenses, over and above the price of the property, that buyers and sellers normally incur to complete a real estate transaction.
Costs incurred may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges. Prepaid costs are those that recur over time, such as property taxes and homeowners' insurance. The lender is required by law to state these costs in a "good faith estimate" within three days of a home loan application. Gifts of equity still incur closing costs.
All costs and fees paid by a buyer in a real estate transaction, or by a borrower in mortgage loans.
How to use Closing costs in a sentence?
- Closing costs are fees and charges due at the closing of a real estate transaction, in excess of the purchase price of the property. Sellers may also be subject to closing costs.
- Closing costs must be disclosed by law to buyers and sellers and agreed upon prior to a real estate deal can be completed.
- Examples of common closing costs include fees related to the origination and underwriting of a mortgage, real estate commissions, taxes, insurance, and record filing.
Meaning of Closing costs & Closing costs Definition