How Are Closing Costs Determined for South Carolina Real Estate?

Mortgage closing costs in South Carolina are determined based on the down payment and the transaction fees accrued between the buyer and the seller during the home buying process. Transaction fees are otherwise known as settlement fees and are combined with the initial down payment on the date of closing.

Transaction fees can include lock-in fees, title fees, credit report fees, appraisal fees, property taxes, mortgage points, private mortgage insurance and interest charges accrued from the date of closing to the day the first mortgage payment is made. Often these fees are paid before the closing date because payment is required during the loan application and approval process. The mortgage company and real estate agent provide an itemized list of these fees for the buyer.

Closing costs are an inevitable part of all mortgage loans. Lower closing costs are sometimes negotiated between the buyer, lender and other providers involved. Closing costs may vary depending on the lender and the buyer's credit score. A thorough understanding of closing costs and how they are determined can often mean the difference between choosing a good loan or a bad loan. A bad loan with a high interest rate will unnecessarily drain the buyer of important funds.