What Are Closing Cost? Who Pays Them?

January 14, 2022

If you're planning to buy a home or refinance you need to educate yourself on closing costs. On a basic level, a closing cost is a payment required to finalize a home loan and is separate from a down-payment. Closing costs can vary by home and situation but are paid by the buyer, seller or lender.

The seller is in charge of paying their real estate agent. Home buyers have a few more expenses which could include, title insurance, appraisal fees or recording fees. Thankfully, home buyers can take care of these items in a number of ways. In some cases it makes sense to negotiate these costs with the seller.