A visual companion to the closing costs handout - scroll to see the full breakdown, or save/print as an image.

Buyer education

Closing costs,
in four categories.

Beyond the down payment, buyers bring funds for closing costs - a bundle of one-time fees and prepaid items. Here are the four categories, who typically covers each one, and when each piece comes due.

What's in the bundle
Category 1

Lender & loan fees

Origination, credit report, appraisal, and flood certification - the cost of underwriting and verifying your loan.

Typically paid by the buyer
Category 2

Title & settlement

Title search, lender and owner title insurance, and the settlement fee - confirming the seller can legally convey clear title.

Split between buyer and seller
Category 3

Taxes & recording

Recordation and transfer taxes plus recording fees - making the sale and your loan a matter of public record.

Varies by state and contract
Category 4

Prepaids & escrow

First-year insurance, interim interest, and the tax and insurance escrow cushion - the reserve your servicer draws from later.

Typically paid by the buyer
Who pays what

Every closing cost lands on one of two sides of the table - knowing which side is what lets you negotiate credits intelligently.

Typically the buyer

  • Loan-related fees (origination, appraisal, credit)
  • Lender's title insurance and settlement fee
  • Recording fees on the deed and deed of trust
  • Prepaid interest, first-year homeowner's insurance
  • Escrow deposit for taxes and insurance

Typically the seller

  • Real estate commissions (per the listing agreement)
  • Grantor / transfer taxes (varies by state and contract)
  • Property taxes owed up to the closing date
  • Existing loan payoff and lien releases
  • Negotiated seller credits toward buyer costs

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Equal Housing Opportunity. {{lo.company}}, NMLS #{{lo.nmls}} (Company NMLS #{{compliance.companyNmls}}). This material is educational only and is not a commitment to lend, an offer of credit, or a fee quote; all loans are subject to underwriting approval. Costs described are general categories - actual items and amounts vary by transaction, loan program, and state, and appear on your official Loan Estimate and Closing Disclosure. This co-marketed material is shared by each party at its fair-market-value cost consistent with RESPA Section 8; no party pays for referrals and none are required.