As I continue to work with first-time homebuyers, I find one particular question that comes up time and time again: What are closing costs?

Okay, this is great content for a real estate blog post. Of course, in every transaction, buyer and seller can negotiate "who pays what", but once the contract is signed, instructions cannot be changed unless agreed upon by both parties in writing.

Hopefully, I can give you a simple-to-understand explanation of what items are typically included in a buyer's closing costs. Escrow fees and title fees: generally each party pays their own escrow fees.

Escrow fees in Los Angeles right now are typically a $250 base, plus $1.75-$2 per one thousand dollars of purchase price. The seller generally pays for the owner's title policy, which covers your interests as the new owner. As the buyer, you will typically pay for the "lender policy" that covers the new lender's interest in the title to the property.

Other ancillary fees that are part of your closing costs include notary fees, courier fees, wire transfer fees, document preparation fees, and deed recording charges. Another aspect of your closing costs has to do with your mortgage loan.

Typically you will pay 1% as a loan origination fee Generally speaking, for a buyer, closing costs for a buyer will be somewhere around 2.5-3% of the purchase price. The actual amount depends by and large on whether you are paying points on your loan, how many, and what type of loan you are securing and whether the lender is requiring 'pre-paids' for taxes and insurance.

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