Be prepared and know who’s responsible for the variety of fees and expenses at the closing table.
|BUYER COST||SELLER COST||OTHER|
|Points paid to receive a lower interest rate|
|Mortgage insurance premium|
Escrow for homeowner’s insurance|
(if paid as part of the mortgage*)
|Property tax escrow (if paid as part of the mortgage*)|
|Title insurance policy premiums|
|Proration** for your share of costs (such as utility bills and property taxes)|
*Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
** Because such costs are usually paid on either a monthly or a yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way to even out bills sellers may have paid in advance, or that you may later pay for services they used.