Who pays closing costs?

Who pays closing costs in the purchase of a property can actually vary depending on the terms of the sale contract. There are some sellers that offer to pay closing costs as an incentive for prospective buyers, while others expect the buyer to pay the costs.

There are a variety of costs that can be included as a part of closing costs. Examples include the appraisal fee, loan origination fees and any insurance requirements. Closing costs can also include any prepayment penalties that the seller has to pay when paying off his mortgage. Notary fees, fees for changing the title to the home, and processing fees can also be included.