What is included in closing costs?

Q: What is included in closing costs?

Closing costs are the fees and expenses of originating the mortgage, paid to the lender, settlement-service providers, and other third parties. They can include origination, application, or underwriting fees; title search, title insurance, or closing fees; and county recording fees.

Short answer

are the fees and expenses of originating the mortgage, paid to the lender, settlement-service providers, and other third parties. They can include origination, application, or underwriting fees; title search, title insurance, or closing fees; and county recording fees.

Full explanation

Fannie Mae treats closing costs as the charges tied to creating the loan and paid to the lender, the settlement office, and other third parties.

Typical items include the lender's origination, application, or underwriting charges; title search, title insurance, and settlement fees; and the county's fee to record the documents.

This list comes from Fannie Mae's homebuyer FAQ and is illustrative, not a complete inventory of every charge that can appear on a closing statement. Actual items and amounts vary by loan, property, and location. Compare the written Loan Estimate and Closing Disclosure for the charges on a specific offer, rather than treating any single list as universal.

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