Closing costs, explained.

How closing works in Arizona

Arizona uses an escrow (title) company as a neutral third party. It holds the earnest money, collects documents, pays off loans and disburses money at closing.

Common buyer costs

• Lender fees: origination, underwriting and appraisal. Your lender lists them on the Loan Estimate.
• Prepaids: homeowner's insurance, property tax and interest set aside in advance.
• Escrow and title: escrow fee share and lender's title policy.
• Inspections: general home inspection, plus termite (wood-destroying insect) and roof if you choose.
• HOA: transfer and capital fees if the home is in an HOA.

Federal rules require your lender to give you a Loan Estimate and a Closing Disclosure at least 3 business days before closing (CFPB).

Common seller costs

• Mortgage payoff and any liens.
• Escrow fee share and the owner's title policy (often paid by the seller in Arizona, but negotiable).
• Prorated property taxes and HOA dues.
• Any repairs or credits agreed to in the contract.
• Real estate compensation, which is always negotiable.

See what you'd walk away with using the net proceeds calculator.

Frequently asked questions