What is a common type of expense included in closing costs?

Closing costs typically encompass a variety of expenses that a buyer or seller incurs during the final stages of a real estate transaction. Among the common expenses included in these costs are inspection fees. Inspection fees are essential as they cover the costs associated with evaluating the condition of the property, which helps the buyer make informed decisions. These inspections can reveal any structural, mechanical, or safety issues that could affect the property's value or the buyer's plans.

In contrast, while property insurance premiums, marketing fees, and monthly mortgage payments are pertinent to real estate transactions, they do not fall under the category of closing costs. Property insurance premiums are usually paid separately prior to or at the time of closing but are not classified as closing costs themselves. Marketing fees generally relate to the seller’s expenses incurred to promote their property and are not borne directly by the buyer during closing. Lastly, monthly mortgage payments stem from the financing of the property and are ongoing costs rather than one-time expenses at closing.