What do closing costs pay for?

One of the things that must be taken care of before a real estate transaction can be complete is that closing costs must be paid. Both buyers and sellers will be responsible for paying costs but they cover different things. Most of the time, sellers will pay the real estate commission as well as any property taxes and other dues that may be outstanding.

The buyers, on the other hand, have more costs to cover than the seller. The majority of these costs are related to the mortgage loan. Some of the costs that a buyer will have to pay at closing include the costs of an appraisal fee, an origination fee, a flood certification fee, prepaid interest, prepaid insurance, title insurance, notary fees, a recording fee, tax servicing fees, a credit report fee, and a bank processing fee.

There may be situations where a buyer can negotiate that the seller or a builder (if the home is new construction) can pay some or all of the closing costs. Of course, everyone’s situation is different and it is important to discuss this with an experienced real estate attorney. If you have questions, contact our firm today.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your estate or real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.