Which item is considered a closing cost for a buyer?

A down payment is considered a closing cost for a buyer because it is a substantial upfront payment made to secure a mortgage and finalize the purchase of the property. This cost typically represents a percentage of the home's purchase price and is required by lenders as part of the financing process. The down payment is often discussed during the closing process and is essential for determining the buyer's equity in the property right from the start.

In contrast, insurance premiums paid by the seller, mortgage payments, and homeowner association fees do not fall into the category of closing costs for the buyer. Insurance premiums are costs that the seller may handle separately, while mortgage payments are ongoing expenses that begin after the closing. Homeowner association fees may also be considered regular expenses that arise from living in a property governed by an HOA and are not typically part of the closing costs incurred at the time of purchase.