Closing costs are something that both sellers and buyers have to deal with, but many individuals do not understand everything that is behind the closing costs. Buyers are usually responsible for closing costs, but some circumstances – such as specific loans and purchasing agreements – can leave the sellers responsible for closing costs. These costs are generally due at the time the home is purchased and can add anywhere from 2 to 5 percent of the cost of the home onto the mortgage. Lenders are generally able to estimate the closing costs and must let the buyers know what the closing costs will be within three days of the processing of the loan. What is included in closing costs? Depending on the area you are in and the type of home you are purchasing, the closing costs can be made up of various factors. Generally, closing costs include the cost for processing the loan, title insurance, appraisal fees, fees associated with the title search, and the recording fee. Closing costs are basically...
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