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A Closing Costs Primer
By Matt Unangst, 23 Jan 00:40
On the day that you close a real estate transaction, you will have to pay for a number of services provided by various companies and people during escrow. This payment is called closing or settlement costs. It is useful to know some facts about closing costs before you go to close your transaction.
Typically, closing costs are about equal to eleven percent of the total cost of the transaction. They go to pay for things like the real estate commission, loan and escrow fees, title insurance, and pest inspection. Although the title company office is often the site of closing, title insurance normally makes up less than ten percent of closing costs.
Title or escrow company official should review your settlement and explain closing costs to you prior to closing.
SEE ALSO: 10 Steps to a Hassle-Free Close, About Escrow, Closing Costs Checklist, The Closing Process, The Functions of Escrow
Tags: closing escrow costs