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3. Attorney’s fees

Some states and territories require the presence of a real estate attorney when closing a property purchase. These locations include Alabama, Delaware, Florida, New York, West Virginia, and Washington, DC.

Besides preparing and reviewing paperwork, lawyers can handle legal issues that may arise when you’re purchasing a home. Some lawyers charge $150 to $350 per hour, while others charge a flat rate between $500 and $2,000 for assisting on a real estate transaction.

4. Prepaid daily interest

This covers any pro-rata interest on your mortgage that’s expected to accrue from the date of closing to your first monthly payment. The interest amount depends on the total loan amount and your mortgage rate.

5. Loan origination fee

Also known as the underwriting fee, the origination fee covers a lender’s administrative expenses for preparing your mortgage documents and evaluating your application. This may also cover the lender’s attorney and notary fees.