Closing costs are a set of fees and expenses incurred when purchasing a property. These costs are typically paid by the buyer, but the seller has their own closing costs and may contribute to some of the buyers depending on the loan type and the negotiated contract. Understanding the types of closing costs and what to expect is important for homebuyers, especially when budgeting and planning for the purchase of a new home.

Origination Fee: This is a fee charged by the lender to cover the cost of processing the loan application. This fee can range from 0.5% to 2% or more of the loan amount and type of loan. Your lender will provide the information on this fee. Shop around for a good lender.

Lender Fees: Lenders may have other fees associated with the loan including but not limited to: Loan Servicing fee, underwriting fee, credit reporting fee and flood certification fees. Shopping for a good lender is important and verifying their fees can save you money.

Appraisal Fee: An appraisal is a professional assessment of the value of the property and is typically ordered by your lender. This fee is typically paid by the buyer and can be from $400 to $600.

Attorney Fees: These fees are charged by the closing Real Estate Law firm for items that include but are not limited to title search, title commitment, owner title insurance policy, lender title insurance policy, printing, document preparation, courier or mailing fees and notary services. These fees can be from $400 to $3,000.

Survey Fee: A survey is a map of the property that shows the location of the property boundaries and any structures on the property. This fee can cost anywhere from $200 to over $1000 depending on size of the property. This is not a requirement and depends on the property location and the existance or non-existance of a current survey on record.

Recording Fees: These fees cover the cost of recording the transfer of ownership with the local government. The deed recording fee is paid by the seller and is typically $15-$20. The mortgage recording fee is paid by the buyer is typically $25-$30.

Homeowner's Insurance: This insurance protects the property from potential damage and helps to cover the costs of repairs. Get several quotes to find the best fit for you. This fee can be from $500 to over $1,000 per year.

Deed Recording Fee (or Deed Stamps): Seller paid. A fee charged by the state for entering the transfer of ownership into public record when a property is sold. For Greenville County, South Carolina the fee is as follows: $1.85 for every $500 increment of the price of the final sales price of the real estate property. (.55 goes to the county and 1.30 goes to the state)

Property Taxes: In Greenville County, SC, the property taxes are paid in arrears, meaning you pay at the end of the year for the previous year. At closing, you will pay your portion of the prorated amount. EX: If you move into the home at the beginning of November, you would only pay November and December property taxes. The tax rate is 4% unless the home is a second home or investment property. That rate is 6%.

HOA Dues: This varies by neighborhood and only applies if there is a Home Owners Association. You will only be responsible for the dues from the date you close on the property. These dues vary.

It's important to keep in mind that closing costs can vary depending on the property, lender, and other factors. It's always a good idea to get a good-faith estimate from the lender before buying a property to get an idea of the closing costs you can expect.

In conclusion, understanding the types of closing costs in South Carolina and what to expect can help you budget and plan for the purchase of a new home. Be sure to work with a knowledgeable real estate agent and lender to ensure that you are fully informed and prepared for the costs associated with buying a property.