Below is an overview of the types of closing costs you may incur:
Appraisal Fee
This is a one-time fee that pays for an “appraisal”, a statement of property value required on most loans. The appraisal is made by an independent fee appraiser.
Title and Escrow Fees
In addition to your title and escrow fees, there are two title policies – a buyer’s title policy (that protects the new homeowner) and a lender’s title policy (that protects the lender against loss due to a defect in the title). These are both one-time fees (non-recurring).
Miscellaneous Title Charges
The title company may charge fees for a title search, title examination, document preparation, notary fees, recording fees and a settlement of closing fee. These are all one-time charges.
Document Preparation Fee
There may be a separate, one-time fee that covers preparation of the final legal papers, including the note and deed of trust.
