Closing costs are the fees and expenses that need to be paid in order to get finalize a mortgage or home equity loan. The closing costs you will be required to pay may vary from loan to loan, as some are state or federally mandated, while others are contractually provided for and can often be negotiated away. In addition, a borrower is not always required to foot the closing cost bill alone, as the seller will often chip in so as to secure a higher purchase amount or interest rate.
While there are no naming conventions for closing costs, meaning they may be referred to differently by different people, some of the most common are:
Title Service Fees
Lenders and real estate agents often use closing costs to sneak in a bit of extra profitability, so it's important that you carefully review what you're paying for and ensure that each charge is absolutely necessary. This isn't to say that you should push the issue on every cost because some are important and will save you a lot of money in the long run, but rather that you should be somewhat cynical. Paying an attorney that you trust to review all documents and lend advice might therefore be worth it.
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