What do 'closing costs' include?

eastgateSeptember 18, 2009

A potential buyer requested that I pay all of his closing costs, $10,000 on a $200,000 house. He had included in the costs an estimate of over $3000 for insurance. Is it typical for the seller to pay the insurance premium in addition to bank fees? I also don't understand where he came up with the $3000 when I pay $1200/year, but that's beside the point.

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Billl

It doesn't really matter what they call a fee - it is just money you won't get. The only thing that matters to you is what you net out with at the end.

BTW - before closing, you will get a real list of charges. Until then, everything is just an estimate. If you agree to pay "up to" a certain amount, that is max it will be.

    Bookmark   September 18, 2009 at 2:26PM
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dave_donhoff

Hi Eastgate,
If your buyer is using conventional financing, their lender won't let them pocket any of your contribution toward their closing costs... so no worries there, its not like they're pulling a quick one on you.

Here's a list with explanations of typical closing costs;
http://www.nobullmortgage.com/closingcosts.php

Cheers,
Dave Donhoff
Leverage Planner

Here is a link that might be useful: List & Explanations Closing Costs

    Bookmark   September 18, 2009 at 3:05PM
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jrdown

Dave ~

Thanks for posting the closing costs explanations. I will run it off for my education.

Robyn

    Bookmark   September 20, 2009 at 6:24AM
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