These are processing fees you pay to your lender in exchange for creating your loan. Closing expenses cover things like your home appraisal and searches on your home’s title. The amount of closing expenses you pay depends on the type of loan you take and where you live.
Both buyers and sellers are expected to pay closing expenses, but the buyer usually bears the bulk. Sellers on the other hand only contribute up to a certain percentage of your mortgage value, which varies by loan type, occupancy, and down payment.
