Closing costs are charges related to the purchase of real estate that go
beyond the actual sales price of the property in question.
Where closing costs come from
Closing costs can accumulate in one of two categories:
The origination of a loan -- Closing costs of this nature involve the actual
creation of a home loan and the fees associated with the lending process.
Property costs -- There are certain requirements of a loan that might directly
involve the property. These requirements can tack on to the total price of
purchasing a property and might show up in the form of closing costs.
Who pays closing costs?
The actual responsible party for closing costs is generally the borrower. There
are some situations, however, where the seller or the lender might pay some or
all of the associated costs of closing a real estate transaction.
What might figure into closing costs?
There are a number of charges that can be added into closing costs. The total
amount to anticipate in this type of fee is between 3 and 6 percent of the total
amount of money borrowed. Some of the charges that might appear in closing costs
include:
Loan
application fees Credit
reporting fees Title search
and title insurance Appraisal Legal fees Inspections Taxes and
document stamps Points and
origination fees Escrowing
fees
Loan
application fees 
