Buying & Selling in Today's Market | Episode I: Closing Cost Credits
What are closing costs for buyers?
Buying a home involves more money out-of-pocket than just the down payment. Buyers also need money to pay for closing costs, which are used to pay for items such as title policies, recording fees, inspections, , escrow fees and fees that a lender charges.
Non-Recurring Buyer Closing Costs
Buyer's closing cost fees that are paid once and never again are called non-recurring. These fees are one-time charges for such items as:
Escrow or closing
Courier / Delivery
State, County or City Transfer Taxes
Lender fees paid in conjunction with the loan on the loan estimate.
Recurring Buyer Closings Costs
Recurring fees are those buyer's closing costs that you will pay again and again. They are often fees collected in advance of closing for prepaid premiums and establishing impound/escrow accounts. They include such fees as:
Flood Insurance (if required in your area)
We have a blog post on the Escrow process and other buyer costs, here.