In real estate transactions, what is the term used for estimated money needed to finalize a transaction?

Closing costs refer to the various fees and expenses incurred during the finalization of a real estate transaction, typically paid at the closing of the sale. These costs encompass a range of charges, including but not limited to those for appraisals, title insurance, various inspections, loan origination fees, and the recording of the property deed. They are essential for completing the transaction and are typically calculated as a percentage of the property's purchase price or as a fixed amount depending on the specific requirements of the transaction.

The other terms listed do not accurately capture the entirety of costs associated with finalizing a real estate transaction. Processing fees usually refer to administrative fees related to the handling of paperwork and are just one component of the overall closing costs. Mortgage insurance is a separate expense required by lenders to protect themselves in case of borrower default, which does not represent the totality of costs to close a transaction. Transaction fees typically refer to charges related to the buying and selling processes but do not encompass all aspects of what closing costs entail. Closing costs provide a thorough understanding of the financial requirements necessary to complete a property sale.