At a closing, you usually pay for things such as real estate commissions, appraisal fees, loan fees, escrow charges, other advance payments including property taxes and the homeowner's title insurance policy, title insurance premiums, and pest inspections.


The amount you pay for in closing costs will vary. However, when buying your home and obtaining a new loan, an estimate of your closing costs will be provided to you, pursuant to the Real Estate Settlement Procedures Act, after you submit your loan application, otherwise known as a 1003 form.


This disclosure provides you with a good faith estimate (GFE) of what your closing costs will be in the real estate process. An itemized list of charges will be prepared when you close your transaction and take on the title to your new property. This includes title insurance policies, title insurance search fees, and title insurance service fees.


Many people wonder if they can pay for their closing costs in installments. The answer to this question is simple, and that answer is no.


Many different parties will have fulfilled their responsibilities (services) and are awaiting payment upon a real estate closing. The title or escrow company will disburse monies to those parties who are owed for performing these services, pursuant to the escrow instructions, when funds are available and can be disbursed.


Many people also ask if they can use personal checks to pay for closing fees. Most title insurance companies do not accept personal checks greater than an amount of $250, because it is too much of a risk.


To pay off your closing fees, payment should be in the form of a cashier's check, issued by a banking institution, and made payable to the title insurance company or escrow office in the amount requested. A personal check may delay the closing and may be unacceptable to the title insurance company or escrow company. An out-of-state check can also cause a delay in your closing due to possible delays in clearing the payment.