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Closing Costs

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Most generally, closing costs is associated with a cost of a transaction. However, more commonly closing costs pertain to real estate and constitute a range of fees and expenses paid by both the seller and buyer at the time of the transaction. Closing costs are typically comprised of title insurance premiums, deed recording fees, inspection and appraisal fees, as well as attorney's fees. In addition, closing costs may include lender discount points, down payments, and loan repayment penalties. Some closing costs are statutory fees imposed by the government. Other closing costs are charged as brokerage commissions for administering the transaction. Occasionally ordinary buyers and sellers have trouble making sense of closing costs. This is often due to the fact that closing costs may vary from state to state, as well as from lender to lender.



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