10/12/2026
Buying a home comes with a few costs beyond the purchase price, and two that often get grouped together are **closing costs** and **prepaid costs**. While both are typically paid at closing, they serve different purposes.
𝐂𝐥𝐨𝐬𝐢𝐧𝐠 𝐜𝐨𝐬𝐭𝐬 are the fees tied to processing and finalizing your home purchase. These can include lender fees, appraisal fees, title services, recording fees, and more.
𝐏𝐫𝐞𝐩𝐚𝐢𝐝 𝐜𝐨𝐬𝐭𝐬 are funds collected in advance for future home expenses, such as homeowners insurance, property taxes, and daily interest from the day you close until your first mortgage payment is due. Depending on your loan, some of these funds may also help establish your escrow account.
Every transaction looks a little different, which is why it is always helpful to review your Loan Estimate and Closing Disclosure with your lender before closing day. Knowing what each cost covers can make the process feel a whole lot less overwhelming.
Have questions about buying, selling, or what to expect along the way? The EDGE Realty Group team is always here to help. 🏡
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✨ 𝗬𝗼𝘂𝗿 𝗴𝗼𝗮𝗹𝘀. 𝗢𝘂𝗿 𝗴𝘂𝗶𝗱𝗮𝗻𝗰𝗲. 𝗥𝗲𝗮𝗹 𝗿𝗲𝘀𝘂𝗹𝘁𝘀. 𝗪𝗼𝗿𝗸𝗶𝗻𝗴 𝗳𝗼𝗿 𝘆𝗼𝘂.
Edge Realty Group, Iowa City, IA
☎️ 319-351-3355
🖥 www.edge-realtygroup.com
Licensed to sell real estate in the state of Iowa.
