The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom. The focus here is closing costs charged to the buyer.

The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Closing costs typically range from 3 to 5 percent of the loan (for example, $3,000 to $5,000 on a $100,000 mortgage). They can be grouped in three general categories: loan costs, title fees and government fees. Provided is an explanation of each and their respective fees. They are to be used as estimates for the buyer's planning purposes only, as closing costs may vary from lender to lender.

Loan Costs
Required fees to secure a mortgage include the following:

Application & Credit Fee
The application fee ranges from $350-$525. It is often paid in advance and nonrefundable. This fee usually includes the costs of a credit report. If done separately, the credit report may cost from $75 to $150.

Appraisal Fee
This fee consists of an independent appraisal of the home you desire to purchase. A written opinion of market value by a licensed appraiser is required by the lender to make a loan. Minimum appraisal cost is about $300 for a $100,000 home. However, depending on the size and cost of the home, it could be higher. The appraisal fee is often paid before closing when the appraisal is performed.

Attorney's Fees
Legal fees can run from $400 to $700 and up. Attorney representation is needed to review the contract and loan documents. The attorney fee is usually paid at closing.

Documentation Fees
Some lenders may charge for a fee for document preparation, processing and underwriting, which adds up to 1 percent of the loan amount. Other lenders may offer no fee loans, but at a higher interest rate.

Home & Pest Inspections
A home inspection provides an honest and objective opinion as to the overall condition of the home. A pest inspection exposes the presence of termites and any related damage. Home inspections normally start around $300 and vary depending on the type and size of the property.

Homeowner's & Hazard Insurance
Homeowner's and hazards insurance protect your new home against physical damage casued by fire, vandalism, natural disaster and other causes. Most states require that your insurance premium be paid a full year in advance and to become effective at closing. Premium costs vary depending upon the value of the home. For example a homeowner's policy for a $200,000 home can cost between annually.

Interim Interest or Daily Rate of Interest
Starting from the day you close on your new home through the end of the month, this cost can include 0-30 days' of interest payable to the lender.

Loan Origination Fees & Discount Points
The loan origination fee is charged for setting up the loan. Discount points are prepaid finance charges collected by the lender at closing. Paying points provides a means for the borrower to by down the interest rate, reducing the costs of the mortgage over the life of the loan. For example 1 point would be equal to $850 on an $85,000 loan.

Mortgage Insurance (PMI)
An insurance premium that buyers are required to pay when the down payment is less than 20 percent of the home's value. It protects the lender in the event buyers are unable to make loan payments. Premiums are usually paid annually from an escrow or reserve account, or in a lump sum at closing. A buyer whose mortgage is insured by FHA or guaranteed by VA will have to pay FHA mortgage insurance premiums or VA guarantee fees.

Survey
A current survey verifies property lines to make sure there are no encroachments or boundary violations. The lender may request a complete survey to ensure that the house and other structures on the property meet legal codes and regulations. Depending on the size of the property and the state you live in, surveys can cost between $250 to $450. Although usually paid by the seller, buyers are sometimes required to pay.

Document Preparation Fee
This is a flat fee paid to the title company. It usually ranges from $75-$200.

Title Search & Title Insurance
Title insurance is purchased at the time of closing. A title search proves that the seller is the legal property owner with no claims against the property. The tile insurance policy assures payment to any claimant in case of discrepancies. Sellers typically buy an Owners Policy to assure and protect the buyer, and buyers purchase a Lenders Policy to assure and protect lenders. The buyers cost for the Lenders Policy can range from $260-$600

Government Fees
Government fees are often the biggest costs at closing. City and county transfer taxes, along with recording fees and prepaid property taxes make up government fees. Transfer tax on a sale price of $150,000 requires a transfer tax payment of $1,125.

Recording Fee
This fee is paid to the county clerk's office to officially record the change of title or ownership of the property. Each county established a fixed price around $30 per page.Taxes Lenders often require that a few months of property taxes, along with hazard and mortgage and insurance be escrowed or deposited into a special account. This ensures that funds will be available to cover these costs .