Closing costs or settlement costs are an accumulation of separate charges paid to different entities for the professional services associated with the buying and selling of real estate.

Some of the items associated with closing costs are:

* Title Insurance Premium.
Fee paid by an individual to ensure he has a marketable title or (in case of a lender) to ensure its lien position.

* Real Estate Commission.
Fee paid to a real estate company for services rendered in listing, showing, selling and consummating the transfer of property.

* Transfer and Assumption Charges.
Fees charged by a lender to allow a new purchaser to assume an existing loan.

* Recording Fees.
Fees assessed by a county recorder @ office for recording the documents of a real estate transaction.

* Loan Fees.
Fees charged by a lender in connection with the processing of a new loan. These may include points, origination fee and credit report.

* Escrow Fees.
Fees charged by a title and/or escrow company for services rendered in preparing documents necessary in the consummation of a real estate transaction.

* Additional Settlement.
Taxes, insurance, impound, and interest prorations, and termite inspection fees.