What Are Closing Costs

Learn more about this important part of owning a home

By Jason Boone

During my years of working in Bend Oregon Real Estate I’ve had many clients wonder what are closing costs? And who pays them?

In today’s post I will break down what closing costs are and who pays them so you will know what to expect when buying a home.

What Are Closing Costs

Closing costs are the fees you can expect to pay at the closing of the home you are purchasing.

Although closing costs are traditionally paid by the buyer in a traditional Real Estate transaction, the seller can be expected to pay closing costs when the buyer has a VA mortgage loan.

With FHA loans the buyer can roll a portion of the closing costs into their FHA loan if the buyer meets the loan-to-value guidelines and their loan plus their closing costs won’t exceed 96 percent of their homes market value.

Closing Cost Breakdown

Closing costs can typically be broken down into the following:

• Loan Origination Fee.
• Appraisal Fee.
• Title Insurance fee.
• Pest Inspection fee.
• Attorney’s fees.
• Underwriting fee.

What to Expect

Lenders by law are required to give you a Good Faith Estimate (GFE) or HUD-1 settlement statement form which will outline the total closing costs you will be expected to pay.

Let’s say your home will cost $150,000, you can be expected to pay up to $7,500 or more in closing costs but the good news is that your closing costs should not amount to more than 10 percent of a home’s purchase price.

Learn More

To learn more about what to expect with closing costs, or to view Bend Oregon homes for sale, contact me, Jason Boone, Principal Broker at Duke Warner Realty | Skjersaa Group by calling me anytime at
(541) 383-1426 or by emailing me at Jason@sgbend.com.