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Checklist: Closing Costs vs. Prepaid Items

picture of couple getting keys to new home What closing costs and prepaid items should you expect at the closing table?


Closing Costs

When you sit down at the closing table, you’ll probably pay a variety of expenses as part of your closing costs. These charges stem from the real estate transaction itself and might include but are not limited to:

  • Loan origination fees
  • Discount points (also known simply as “points”)
  • Appraisal fees
  • Attorney fees
  • Title search and insurance fees
  • Survey fees
  • Deed recording fees
  • Credit report charges
  • Home Inspection costs

Prepaid Items

In addition, your lender will probably require that some prepayments be made at closing before their actual due date. These costs are related to the home itself rather than the real estate transaction. Depending on the particulars of your loan and your circumstances, you’ll probably continue to pay at least some of these charges for the life of the loan and/or as long as you own the home. They might include but are not limited to:

  • Real estate taxes
  • Mortgage interest
  • Home Association dues
  • Mortgage insurance premiums
  • Hazard insurance premiums

To read more from our Moving Guide, check out What to Expect When Purchasing a Home, Home Inspection Tips, and our Home Inspection Checklist.

Tips
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  • Save Time - Simplify your household cleaning by filling a bucket with all the basics you need to be carried from room-to-room like glass and bathroom cleaners, sponges, brushes, baking soda, vinegar, hand towels, rubber gloves and the like.
  • Save Money - Call it "recession chic" if you like, but trying to limit most purchases — from clothes to cars — to when the items are on sale is a relatively painless way to stretch your expenses.
  • Save for the Future - When your child or grandchild earns money for tasks or gets money for Christmas, stock it away in a Savings for Minors account. It will ensure children learn the importance of saving.
  • Save Time - Spend time to save time. Sound odd? Whether it's taking better notes during meetings, learning a new skill, or making to-do lists, sometimes investing time to simplify or streamline tasks is the most efficient way to save time in the long run.
  • Save Money - During tax season (and year round, too), the more organized you are, the easier and more quickly your tax preparer can file your taxes. And that means money saved — and a faster refund in your bank account.
  • Save for the Future - Spend less that you earn. It sounds so simple, but for many of us, it's not. If you spend more money than you make, the borrowed money that covers the difference — often in the form of credit cards or a loan — comes with interest which can quickly add up.
This information is general in nature and is provided for educational purposes only. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Regions encourages you to consult a professional for advice applicable to your specific situation.