Closing fees can vary quite a bit, depending on the type of property you buy and where you buy it, but frequently include things like:

  • A fee for checking your credit report

  • A loan origination fee, which covers the cost of processing the paperwork for the loan

  • An appraisal fee

  • Charges for any inspections that might have been required by either the buyer or the lender

  • Discount points - fees that are paid in return for a lower rate of interest

  • Title insurance

  • Title search fees, to ensure that there are no unpaid mortgages or tax liens on the property

  • Recording fees, paid to the county or city

  • Escrow deposits

  • Underwriting fees

  • Pest inspection fees


This is just an overview of some of the more common things that can make up the closing costs - it's not meant to be all-inclusive, since closing fees can vary considerably.