What is typically included in closing costs?

Closing costs are the various fees and expenses associated with finalizing a real estate transaction. These typically include a range of costs that must be paid at the closing of a property sale. The correct choice mentions fees for appraisals, title searches, and lender services, all of which are common components of closing costs.

Appraisals are crucial as they determine the market value of the property, which affects the loan amount. Title searches ensure that the seller has the legal right to sell the property, confirming that there are no liens or issues that could affect ownership. Lender services are necessary to cover the costs associated with processing the mortgage, including underwriting and document preparation.

The other options focus on items not typically included in closing costs. The down payment is a separate initial payment made to secure the mortgage, while moving expenses are related to relocating rather than the transaction itself. Agent commissions, while a cost of selling or buying property, are typically negotiated and arranged separately from regular closing costs.