Almost all loans have origination fees and closing costs, but this is never more evident than in mortgage loans. This is why you should always compare loans properly. But, what exactly are closing costs and exactly how many can be added to your closing statement? On a mortgage loan some of the most common closing costs that will be on your HUD-1 Settlement Statement would be attorney fees, title company services, recording fees, survey fee, document or transaction stamp and/or taxes, brokerage commission, appraisal fees, mortgage application fees, home warranties, inspection fees, pre-paid property insurance, pro-rata homeowner association dues and pro-rata interest.

The thing to remember is that some of those closing costs are attributed to the buyer, some to the seller and some are even negotiable! There are times when the contract for purchase of a home includes special stipulations where either the buyer or the seller agrees to cover closing costs traditionally allocated to the other. This is often the case when the owner wants a ‘quick sale.’ Although some of the costs are fluid as to which party pays them, one things is for certain. No mortgage loan will close without the closing costs being accounted for. There may be other items to account for as well, so understand that both the down payment and the loan need to be sizeable enough to cover all closing costs or the mortgage loan won’t close nor will the property sale!