Closing costs refer to the total sum of certified funds (usually by wire transfer or cashier's check) that must be paid by the buyer at closing, aside from the downpayment and financing obtained by a mortgage. Closing costs can include, but are not limited to:
Due to the up-to-the-day nature of many of these costs (for example, pro-rata utility payments), the final closing costs are often not calculated until the closing date (or just before it). Most buyers benefit from setting aside more than expected to make sure closing goes smoothly.
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