Closing costs, in short and simple terms, refer to the various fees and expenses associated with the purchase or sale of a property. These costs are usually paid by the buyer or seller during the closing process, which is the final step before the property ownership officially transfers.
Closing costs can include fees for loan processing, property appraisal, title insurance, attorney services, and taxes, among others. They can add up to a significant amount and are important for both buyers and sellers to consider when budgeting for a real estate transaction.
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