Closing Costs Checklist

[Your Company Name]

Prepared by: [Your Name]

Purpose

Creating a Closing Costs Checklist is crucial for buyers or sellers in a real estate transaction to ensure they are fully prepared for the expenses involved in closing a deal on a property. Closing costs can vary widely based on location, the type of property, and the details of the transaction, but they typically range from 2% to 5% of the purchase price for buyers

For Buyers

Loan Application Fee: Fee charged by the lender to process your mortgage application.

Origination Fee: This is charged by the lender to evaluate and prepare your mortgage loan.

Credit Report Fee: Cost for the lender to check your credit score.

Appraisal Fee: The fee for having the property appraised to determine its value.

Attorney Fees: Some states require an attorney to be involved in the transaction.

Mortgage Insurance: If your down payment is less than 20%, you might need to pay mortgage insurance.

Prepaid Interest: Interest that accrues on the mortgage between closing and the first monthly payment.

For Sellers

Real Estate Agent Commissions: Typically the largest cost, can be 5% to 6% of the sale price.

Owner’s Title Insurance: Protects the buyer in case of issues with the title.

Home Repairs: Any repairs agreed upon after the home inspection.

Home Warranty: Optional, but can make your home more attractive to buyers.

Prorated Property Taxes: The seller may need to cover property taxes up to the sale date.

Mortgage Payoff: Any remaining balance on the seller’s mortgage.

Closing Fees: Paid to the title or escrow company for facilitating the closing.