You should review the documents carefully to ensure that you understand and are satisfied with their terms before signing anything. You will be asked to pay the balance of the purchase price and closing costs with a cashier s check or certified check. Check with your real estate agent, attorney or lender to determine the exact charges you will be required to pay. Advance deposits, which the lender will place and hold in escrow for real property taxes and insurance, are not required to be listed in the estimate according to the law. The lender collects a portion of those costs every month and then pays the insurance and taxes when due.
Closing costs can mount up to a sizable sum, but some of the items are tax deductible.
Speak with your tax advisor about the items that are deductible. Inc. Revised 1997 All rights reserved. No part of this work may be reproduced in any form without written permission from the Maryland State Bar Association. Inc. All rights reserved. Please contact the Webmaster with your questions or comments.