{"id":5035,"date":"2022-01-18T04:52:00","date_gmt":"2022-01-18T04:52:00","guid":{"rendered":"https:\/\/www.guidanceresidential.com\/resources\/?p=5035"},"modified":"2023-06-15T18:18:33","modified_gmt":"2023-06-15T18:18:33","slug":"what-are-the-closing-fees-guidance-residential","status":"publish","type":"post","link":"https:\/\/www.guidanceresidential.com\/resources\/home-buying\/what-are-the-closing-fees-guidance-residential\/","title":{"rendered":"What Fees Do Closing Costs Include?"},"content":{"rendered":"\n

If you\u2019re getting ready to buy a home, you\u2019ve probably been saving up for a down payment<\/a>. But there\u2019s something else to consider: closing costs. You will need to have enough funds on hand to cover these additional fees when you go to close on your new home.  <\/p>\n\n\n\n

Here\u2019s what you need to know about these fees\u2014and how to figure out how much to set aside for them. <\/p>\n\n\n\n

What Are Closing Costs? <\/h2>\n\n\n\n

Closing costs are fees paid at the conclusion of a real estate transaction\u2014other than the down payment\u2014on closing day<\/a>. <\/p>\n\n\n\n

When you are buying a home, it\u2019s important to know about all of the different costs<\/a> that are involved. A home sale is a complicated transaction, and third parties will provide many services along the way. Some of these services are for your protection, such as a home inspection to check for problems, and a title search to ensure that the seller is the rightful owner of the home and no one else has any claim on it. The home financing provider charges fees for their time and work in arranging for your home financing, while government agencies need to record the sale. Other services are needed as well. <\/p>\n\n\n\n

Closing costs cover the fees to pay those professionals for their services. Instead of paying many bills along the way, you will pay them at the end at closing\u2014on the day the home becomes yours. <\/p>\n\n\n\n

How Much Are Closing Costs? <\/h2>\n\n\n\n

Closing costs typically amount to 3%\u20135% of the amount you are financing. For example, if you are financing $200,000, your costs could run from $6,000 to $10,000. <\/p>\n\n\n\n

The average total for closing costs varies by location. Average closing costs run a few thousand dollars in most states, although the total can be considerably higher in certain states when taxes are included. For example, Washington, D.C., tops the list at close to $30,000 with taxes included. Fortunately, the average total is less than $5,000 in more than half of U.S. states.  <\/p>\n\n\n\n

Your home financing provider will provide you with an estimate of the closing costs you will need to pay. These costs will be detailed in a closing disclosure<\/a> that must be provided to you at least three days before closing. <\/p>\n\n\n\n

Who Pays Closing Costs? <\/h3>\n\n\n\n

Sellers typically pay commissions to both real estate agents, while buyers pay most of the other costs associated with the purchase of their new home. It is possible for the buyer and seller to agree for the seller to pay some or all of the closing costs, but usually, the buyer pays most of them. <\/p>\n\n\n\n

What Is Included in Closing Costs for the Buyer? <\/h3>\n\n\n\n

Homebuyer closing costs include the following: <\/p>\n\n\n\n