So You’re Buying a Home: Get to Know Closing Costs

One of the biggest purchases you can make in your life is purchasing a home – while this is an incredible milestone, it can also be intimidating.

Signing lots of paperwork, shopping for mortgages, and being approved by a lender can all be taxing. But with the right title company (ahem…us), you can rest assured that your property and assets are in good hands.

Not only that, but we promise to help break down some of the real estate mumbo-jumbo jargon for you.

The first step: let’s talk about closing costs. A crucial step in the home-buying process, closing costs are something you should definitely understand before heading to the closing table.

Here’s the “What,” “Who,” and “When” of closing costs.


Down payment? Check. Cost of the property? Check.

Closings costs are additional fees that need to be paid at the time of closing. These may involve: escrow fees, title insurance premiums, tax prorations, loans fees, deed recording fees, real estate commissions, and more.


If you’re a buyer, you’re going to have different closing costs than the seller of the home. What is listed below is considered a “standard” conventional loan in our neck of the woods, but it’s essential to understand that each transaction is different depending on the purchase agreement.

  Buyer Seller Shared Equally
Appraisal Fee*
(can be paid by either buyer or seller)
  $   $  
Commission     $  
Escrow Fee       $
Fire Insurance   $    
Lender’s Policy   $    
Owner’s Policy     $  
Reconveyance Fee     $  
Recording Fee   $   $  


Unfortunately, just because the papers have been signed, doesn’t mean you get to move in right away.

Most buyers anticipate receiving their keys the day of closing; however, this usually doesn’t happen until a day, or a few days, after signing.

Essentially, the transaction doesn’t “close” until all the funds have been cleared and provided to the title company, and the deed to transfer the title is recorded at the county courthouse.

Be sure to check out Alliance’s Blog to stay current on all things real estate, or check out our Buyer-Seller Guide for more of a breakdown on purchasing or selling a home.

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