Closing Costs are the costs paid by Buyers and Sellers at the closing for various services rendered by the lender, the realtor, the title company, and any other services incidental to the sale. The following are examples of charges to Buyers and Sellers.  The lists are examples only.  Actual charges will vary.

Buyer costs normally consist of title and lender fees, examples are:

• Loan application
• Appraisal
• Credit report
• Interest payment
• Points (optional)
• Insurance
• Mortgage Broker fees
• Courier fees
• Mortgage Insurance Premium
• Hazard Insurance
• Closing fee
• Title search
• Title Insurance
• Recording fees
• County Tax
• State Taxes

Good Faith Estimate

It's the law: lenders must give Buyers a "Good Faith Estimate" when they apply for a loan. Or, get good faith estimates when shopping for financing,  since some fees are negotiable. For example, if a lender charges you an origination fee and a broker fee, they're double-dipping - they're charging you the same fee twice. 

The Good Faith Estimate is broken down into sections.  The 800 and 1100 sections are the ones to concentrate on when you compare costs. 

The 800 section denotes the lender fees.  For example, 801 is the loan origination fee, 804 is the credit report fee, and 808 is often the broker's fee. The 110s contain title fees. 

If you see "administrative" or "doc prep" or "miscellaneous", you should question it.

When you compare one good faith with another, the costs should be pretty close.  If one stands out, ask why.

Seller costs: The following are examples of possible Seller costs:

• Real Estate Broker fees
• Property taxes, prorated to title transfer
• Closing fee
• Courier fee
• State/county tax on the sale
• Buyer credits
• Repair costs paid out of escrow

Actual closing costs can vary from one transaction to another.  You may not need to courier documents, and you may not be paying for repairs at all, or through escrow.  And not all Buyers ask for credits from the Seller at closing.  My advice is to have your Realtor review your closing cost statement prior to closing.