There are two types of closing cost expenses: non-recurring (you only pay once) and recurring (costs that repeat at certain intervals). Non-recurring costs include, but are not limited to the following fees: appraisal, credit report, points or loan origination, property inspection, title insurance and escrow, document preparation, tax service, notary, recording, courier, wire transfer, and transfer stamps. Recurring closing costs and prorations include, but are not limited to, the following: property hazard insurance, property tax, interest proration, prorated first month’s payment, and PMI (Private Mortgage Insurance), if applicable. Costs may be divided between the seller and buyer based on the conditions of the transaction.
Your lender and real estate professional will give you a “good faith estimate” of anticipated closing costs. The actual costs will be summarized by the escrow holder in accordance with the lender’s instructions and explained to you at the time of signing.
 What are property inspections and appraisals?
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