What are closing costs?
Closing costs are the expenses incurred by buyers and sellers for the services of various real estate and lending related professionals when transferring ownership of a property.
These expenses are typically made up of:
– An origination fee
– Property taxes
– Title insurance
– Escrow costs
– Appraisal fees
Closing costs will vary depending on the type of mortgage you chose and the location of your new home. You will get a better idea of the amount once you apply for a mortgage and receive a Loan Estimate (LE) that outlines the approximate costs you will owe on or before closing.
Some mortgage options allow you to include your closing costs with your loan amount to limit how much out-of-pocket expenses you’ll need to close. Contact a Fairway loan officer to learn more about this option.
For info on more mortgage related terms, check out our mortgage glossary.