What type of costs occur over and above the property's purchase price?

Closing costs encompass a range of expenses that occur in addition to the property's purchase price during a real estate transaction. These costs may include various fees for services that are required to finalize the sale, such as title insurance, loan origination fees, recording fees, and attorney fees, among others. It's important for homebuyers to budget for these costs, as they can significantly add to the total amount required at closing.

Other options represent different types of costs associated with purchasing a property. Appraisal fees are typically one component of closing costs rather than a stand-alone expense, while interest payments relate to the mortgage taken out for the property and are ongoing costs rather than one-time expenses. The down payment is the initial upfront amount contributed toward the purchase price but is not categorized as a closing cost.