What are closing costs?

Closing costs are all of the fees and expenses associated with closing on a house in North Carolina. These costs vary depending on the property and the specific situation, but typically include lender fees, title insurance, property taxes, homeowner’s insurance, and often a recording fee. Some of these costs are paid upfront and some are paid at closing. Lender fees are the costs associated with obtaining a loan. These include appraisal fees, underwriting fees, loan origination fees, and credit report fees. Title insurance is insurance that protects the lender and the homeowner against any potential title defects on the property, such as new liens against the property. Property taxes are taxes on the property that are paid by the new homeowner. Homeowner’s insurance is insurance that covers damage to the residence due to fire, theft, and certain natural disasters. A recording fee is a fee paid to the Register of Deeds in order to record the new deed of the property. In addition to these common closing costs, there may also be transfer taxes, title search fees, closing attorney fees, and other miscellaneous fees. It is important to understand all of the costs associated with closing on a house so that you are not surprised on the day of closing. It is also a good idea to have an experienced real estate attorney on your side who can help you navigate the closing process.

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