Common buyer cost categories

  • Loan origination, underwriting, appraisal, credit, and related lender charges
  • Interest-rate discount points or lender credits, if selected
  • Escrow and settlement charges
  • Title-related charges and lender's title policy when financed
  • Prepaid interest, insurance, and initial escrow reserves
  • Property tax prorations or adjustments
  • Inspections and specialist evaluations
  • HOA transfer, document, or setup items depending on the transaction
  • Home warranty or negotiated costs, if applicable

The down payment is separate from closing costs. Cash needed after acceptance can also include the deposit, inspections, appraisal, moving, and immediate property work.

Common seller cost categories

  • Broker compensation as agreed in the listing agreement
  • Escrow and title charges according to the contract and local practice
  • Transfer taxes and recording-related items
  • Loan payoff, reconveyance, or lien-related charges
  • Property tax, HOA, rent, or utility prorations
  • HOA documents or transfer charges where applicable
  • Termite, repair, credit, warranty, or other negotiated items
  • Moving, preparation, staging, photography, or pre-market work

Why estimates change

Closing date affects prepaid interest and prorations. Loan structure affects lender charges and reserves. HOA properties introduce association-specific fees. Negotiations can reallocate credits or costs. Title and escrow practices can also vary.

Ask for the right documents

Buyers using financing should review the lender's Loan Estimate and Closing Disclosure. Buyers and sellers should request current escrow estimates and a net sheet or cash-to-close worksheet using the actual contract terms. Ask questions when labels differ across documents.

Avoid wire fraud

Real estate wire fraud is a serious risk. Independently verify wire instructions through a known, trusted phone number before sending funds. Do not rely solely on an email that announces changed instructions.

Primary resources

This overview is not a quote or legal, tax, lending, or financial advice. Obtain current written estimates from the professionals handling the specific transaction.
Raveena Ashar

Reviewed by Raveena Ashar

Orange County real estate professional · DRE #01936601 · Rise Realty