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What do 'closing costs' include?

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Posted by eastgate (My Page) on
Fri, Sep 18, 09 at 13:49

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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RE: What do 'closing costs' include?

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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.

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RE: What do 'closing costs' include?

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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

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RE: What do 'closing costs' include?

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Dave ~

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

Robyn

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