Closing costs are the expenses incurred when buying a home: the fees, taxes and monies due on the day you sign paperwork and finalize the purchase. At that time, the property ownership is transferred from the seller to the buyer. And when buying a house, closing costs can add up to a substantial amount of money for either party. Brush up on closing cost basics by watching this short video. Then, keep reading to learn more about closing costs and how to calculate them.

When Are Closing Costs Due?

In general, closing costs are due on the day of closing, though your bank may require that some purchases and fees be paid independently of closing. As a rule, closing costs are payable at the time when the title of the property changes hands, or when it’s transferred from the seller to the buyer. This moment is also known as the close of escrow.

Build Homeowners Insurance Into Part of Your Closing Costs

While you’re working out the finances on purchasing a home, remember to reach out to your American Family Insurance agent (Opens in a new tab) before you purchase. Schedule an appointment prior to your closing date so you can go over your coverage needs and build a homeowners insurance policy that works for you. In addition to the comfort you’ll find in owning your home, you’ll also walk away with the knowledge that all your hard work is well-protected.

This article is for informational purposes only and includes information widely available through different sources.