What are typical seller closing costs?

Nonrecurring closing costs on mortgage loans include fees that are one-time only and do not extend throughout the life of the loan. Fees such as settlement fees, processing fees and underwriting fees are nonrecurring closing costs, and the seller can pay those fees.

Mortgage lenders limit the amount of closing costs a seller can pay for the buyer. As of 2015, traditional banks and exclusive mortgage lenders allow sellers to pay 6 percent of the nonrecurring closing costs. Potential buyers can look at the good-faith estimate of closing costs provided by the lender and determine which nonrecurring costs they would like sellers to pay. However, sellers must agree to pay those costs before the closing date.