Definition: Closing costs are everything outside of the purchase price that a buyer pays to complete a real estate transaction. For a seller, closing costs are all the fees, except liens or encumbrances, that are deducted from the purchase price.
Fees range from those paid to title, escrow or lawyers; documentary transfer tax; city / county transfer or property taxes; credit reports; appraisal; recording or notary fees; real estate commissions; inspections; loan fees such as points and prepaid interest.
Fees that lenders consider "recurring" are those that are paid again and again such as property taxes or property insurance. Non-recurring fees are those that are paid once.
