What is typically included in the estimated closing costs provided to a borrower?

The estimated closing costs provided to a borrower typically include a variety of fees that the borrower will need to pay at the closing of the loan. One common component of these closing costs is the homeowner association fees, especially if the property being purchased is part of a homeowners association (HOA). These fees cover various services and features pertinent to the community, which can be an important factor for buyers.

Property mortgage insurance may be required depending on the loan type and down payment, but it does not commonly appear in the same category as closing costs. Lender's income tax deduction is not directly linked to closing costs, as it pertains more to the borrower’s tax situation post-purchase rather than fees incurred during the closing process. Agent commission fees are typically paid by the seller, not the buyer, thus would not be included in the estimated closing costs provided to the borrower.

In summary, homeowner association fees are among the costs that a borrower can expect to see included in the estimated closing costs, reflecting the financial obligations of owning property within a managed community.