The 3 Things That Make Up Home Buyer Closing Costs | Mortgage Principles

So you found yourself a cozy pad on the intrawebs and you’re thinking “Wow, this is totally the home, I’m buying it now”?

Cue the celebration, friend! 🥳 You’re totally going to get this home, but there are a few expenses that the online home site isn’t showing you that you need to know about.

So, let’s talk about what home buyer closing costs are and the three most common expenses you can anticipate seeing at the closing table.

#1 - Lending Fees

Lending fees are associated with the processing of your paperwork, examining your unique case, and eventually creating a loan. An example of a specific lending fee would be an Origination Fee, which compensates the lender for creating the home loan.

#2 - Third Party Fees

An example of a third party fee is an appraisal fee, which is paid to the company that assessed the value of the home that you purchased. Other fees include home inspectors and attorneys.

#3 - Homeowners Fees 

Homeowners pay property taxes, homeowners insurance, and homeowners association dues if you have an HOA. While these fees are generally assessed on an annual basis, your lender will usually charge you at closing and hold the funds in escrow to ensure that the cash is there when it’s time to get paid. 

And there you have it, the 3 main fees associated with closing. Your total closing costs will vary considerably, that’s why it’s important to find a lender you trust that can estimate your closing costs ahead of time and give you the total picture. 

Please visit to find an expert loan officer near you to chat about home loan options that fit your needs and get clarity on what closing costs you might see at the closing table.