Ready to buy a house? All set with a buyer’s agent? Have you picked out your lender and discussed closing costs? 

What are closing costs? To put it simply: Closing costs are fees associated with purchasing a home due to borrowing money from a bank/lender.  There isn’t  a standard set of fees/costs. It varies greatly upon the type of home you’re buying, which lender or bank you’re using, the price of the home… it just varies. 

Let’s break down some of the fees and costs, shall we? 

Mortgage Origination Fee – sounds like how the title is. All the fees associated with getting your mortgage, like, the actual loan origination fee, appraisal fee, cost of credit reports, checking on flood plain, items like that. Ask your lender to break it down for you, so you can understand what you’ll be paying and why. 

Taxes/Insurance/HOA – on the day you close, typically these are prorated, unless it’s specified in the offer as another way. 

Title fees – In the state of Wisconsin, the seller typically pays for all the title fees, but you must pay the recording fee, and another small fee that comes about if you are obtaining financing. 

So how much are all these fees? Remember I said that it varies? The best advice I can give you is to speak with your lender or banker. They will give you a good faith estimate on these costs.  And the more you know, the better prepared you’ll be!