Question

Fees paid at the time of a home loan transaction between the buyer, seller and lender are called _____.
a. application costs
b. closing costs
c. lending costs
d. purchase costs

Answer 1

Fees paid are called closing costs..

Answer 2

The correct answer is B. Closing costs

Explanation:

When a specific transaction or business is completed or closed, there are related costs for both the buyer and the seller or those involved in the transaction, these types of costs are known as closing costs as they mean the transaction was closed. Moreover, in the case of a home loan transaction, some of the closing costs include documentation costs, certain warranties and part of the costs for the home. According to this, the fees paid at the time of the transaction are the closing costs.