Common Closing Costs for Buyers

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs within 3 business days of your application. The title company or other entity conducting the closing will tell you the required amount for:

  • Down payment
  • Loan origination Fee (Lenders such as Bank of Oklahoma don’t charge an “origination fee”; borrowers need to be leery of excessive origination and lender “junk fees”)
  • Points, or loan discount fees, which you pay to receive a lower interest rate
  • Home inspection  & Termite Inspection
  • Appraisal
  • Credit report
  • Private mortgage insurance premium (if applicable)
  • Underwriting Fee
  • Document Processing Fee
  • Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
  • Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
  • Deed recording
  • Title insurance policy premiums and Binder
  • Attorney Fees
  • Final Title Search
  • Land survey
  • Notary fees
  • Gap Fee
  • Mortgage Tax Fee/Certification
  • Prorations for your share of costs, such as Home Owners’  and Dock Associations and property taxes*

A Note About Prorations

Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.

*If you purchase a mobile home, you will have to pay for the current year taxes up front at closing.  This will be prorated with the Seller.  Also required on a mobile home/manufactured home is a structural inspection on the foundation.