Closing Costs for the Seller & Buyer Ian is a 3D printing and digital design entrepreneur with over five years of professional experience. After six years of aircrew service in the Air Force, he earned his MBA from the University of Phoenix following a BS from the University of er and homebrewer. What are Closing Costs? Closing day is coming! This is an exciting day — it means a real estate deal is almost complete. The price has been set, and buyers might be eager to start planning the next step — moving in. But, the deal isn’t over and done with quite yet. When the buyer sees the closing paperwork, they will realize that there are more costs in buying a house than just the negotiated sale price. Closing costs are the miscellaneous fees paid to various third parties in the transaction. Real estate agents, lenders, appraisers, insurance companies, and the tax authorities among others will need to paid. The Good Faith Estimate and HUD-1 form provided by the lender will itemize these costs. Lesson Quiz Course Typical Closing Costs Paid by the Buyer The buyer will typically pay for closing costs associated with obtaining a mortgage and doing due diligence on the property. This means they are generally responsible for paying for borrowing money, and ensuring that the property condition and boundaries are as advertised. Below is a list of closing costs paid by buyers: Points: Prepaid interest at closing. The buyer puts extra money up front in exchange for a reduced interest rate for the monthly payments. Appraisal Fee: The buyer will pay for the lender required appraisal to assess the fair market value of the house. Survey Fee: The buyer and lender will want to be sure of the exact boundaries of the property before the purchase. Homeowner’s Insurance: Prior to closing the buyer will get a quote from an insurance company to cover the house. […]