When you purchase a home, closing costs cover fees, insurances, and taxes.
These include:
- Lender fees
- Appraisal fee
- Home owner’s insurance
- Title search and related fees
- Settlement fee
- Title insurance premium
- Transfer Tax
- Property tax and school tax
- Reimbursement of fees pre-paid by seller (taxes, utilities)
- County recording fees
Closing costs to total between 2–6% of the purchase price.