FAQs About Who Covers Closing Costs
To learn more about who pays for closing costs, read these frequently asked questions.
Do I still pay closing costs if I’m paying cash?
Yes, you will still pay closing costs if you’re buying a house with cash. The amount you pay may be less since there aren’t any lender fees to worry about.
Why is the buyer usually responsible for the largest portion of closing costs?
The buyer is usually responsible for most of the costs because mortgage fees usually are the largest. These fees include issuing the loan, fees to record the transfer of funds, and other costs like home appraiser and home inspection fees.
Are down payments part of closing costs?
No, your home down payment isn't part of the closing costs.
Do sellers pay closing costs?
Yes, sellers do pay for closing costs. In most cases they’re only responsible for real estate agent commissions, title transfer fees and seller’s title insurance unless otherwise negotiated with the buyer.
Can closing costs be rolled into a loan?
Yes, closing costs may be rolled into a loan. However, your lender may charge you a higher interest rate, which could cost you more overall.
