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Every loan has Closing Costs. These are fees and expenses incurred for doing your loan. These are paid to your mortgage broker, the lender, the closing company, the county tax office, your new HOA, an appraiser and survey company.

Yes, you are required to pay for certain closing costs. Below is an explanation of the most common ones you would see on an Initial Fees Worksheet. Most closing costs are based on loan amount, interest rate, closing company, insurance rates, etc. Some will need to be paid by you before you close, such as the appraisal and any inspections.

•	UNDERWRITING FEE: Charged by the Lender for the processing of your file (avg. $900)
•	ORIGINATION/MORTGAGE BROKER FEE: Charged by the Mortgage Broker for doing your loan (1-2% of loan amount is average)
•	YSP/YSP REBATE: Paid by Lender to Mortgage Broker for doing your loan. This must be shown as a Charge and a Credit on the Good Faith Estimate (1-2% of loan amount, on the average)
•	APPRAISAL FEE: Paid by you out of pocket, when appraisal is ordered, shown as a credit on the HUD (avg $300-450)
•	CLOSING/ESCROW FEE: Charged by Title Company for closing your loan. (avg $300-700)
•	TITLE SEARCH/ENDORSEMENTS: charged by Title Company for researching history of the property.
•	WIRING/COURIER: standard fees for fedex, wiring of funds to and from Lender
•	LENDERS TITLE INSURANCE: based on loan amount, protects the lender up to the amount of the mortagage.
•	OWNERS TITLE INSURANCE: based on purchase price and covers you backwards from purchase date for any discrepancies on the title not found in the initial title search. Usually paid for by the seller.
•	MORTGAGE RECORDING: paid to the county for recording your new mortgage in their files.(avg $150)
•	DOC STAMPS/INTANGIBLE TAX: standard taxes, based off loan amount, paid to the county by the buyer
•	DEED STAMPS: standard taxes, based off purchase price, paid to county, usually paid by seller.
•	HAZARD INSURANCE RESERVES: usually 2-3 months reserves collected and held in escrow*
•	COUNTY PROPERTY TAXES: usually 3-7 months reserves collected and held in escrow*
•	DAILY INTEREST CHARGES: interest collected from day of closing to end of the month
•	HAZARD INSURANCE PREMIUM: usually one year paid in advance
•	SURVEY: usually required by Title company to determine property lines, easements (avg $250)
•	INSPECTIONS FEES: Home Inspection Fees, paid for by buyer, out of pocket
•	HOA TRANSFER FEES/DUES: Paid by buyer for transfering Homeowners Association into their name and any dues HOA wants paid in advance, i.e. next month or quarter due. *ESCROW: not required but usually a very good idea. Part of your payment each month is put away and held 'in escrow'. When your taxes and insurance are due, they are paid out of this. Prevents you from having to come up with lump sums to pay them when they come due,