Understanding Settlement and Closing Costs

The closing, or settlement, is the official process of passing property ownership from the seller to the buyer. While these costs vary by locality, common professional fees include:

• Appraisal and Credit Report Fees: Professional verification of the property value and your credit history.
• Loan Origination: Fees charged by the lender for processing your mortgage application.
• Title Insurance: Protection ensuring the property is free of legal liens or past ownership claims.
• Escrow Accounts: Funds collected at closing to cover future property taxes and homeowners insurance.