What are closing costs?

Closing costs refer to the fees and expenses incurred during the finalization of a property transaction. This includes a variety of charges that are directly associated with the purchase of the property. Specifically, these can encompass loan fees, which may be associated with securing a mortgage, title insurance to protect against potential defects in the title, and taxes that may be due at the time of closing.

Understanding these costs is crucial for buyers, as they typically arise at the closing date when ownership of the property is formally transferred. Being aware of these expenses helps in budgeting for the total cost of acquiring a property beyond just the purchase price. Other options mentioned, such as moving furniture, home renovations, and marketing expenses, fall outside the scope of closing costs, which are strictly linked to the transaction process itself.