Closing Costs – Who Pays What

There is some confusion and misunderstanding about what exactly closing costs are, and who should pay what. Closing costs are simply all the costs incurred in “closing” a real estate transaction. There are no rules as to who should pay what, everything is negotiable. However, here in Arizona there are several customary expectations.

Down Payment

The down payment is not a closing cost as such, however it is a cost needed to be pays at closing and to avoid confusion i want to just mention the following: The down payment is the difference between the purchase cost of the property and your new loan amount.

For example, if the purchase price of your new home is $1,00,000.00, your lending institution might require you to put down 10% or $10,000 in order to lend you 90% or $90,000.00 for a combined total of $100,000.00. The down payment is always paid by the buyer and is not negotiable.

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