These are expenses you have to pay to state and local agencies, even if you paid cash for the house and didn't need a mortgage:
Transfer Taxes – Required by some localities to transfer the title and deed from the seller to the buyer.
Deed Recording Fees – To pay for the County Clerk to record the deed and mortgage, and to change the property tax billing.
Pro-Rated Taxes – Such as school taxes and municipal taxes need to be split between the buyer and the seller since they are due at different times of the year. For example, if taxes are due in October and you close in August, you would owe taxes for approximately 2-months, and the seller would owe for the other 10-months. Pro-rated taxes are usually prorated based on the number of days, not months, of ownership. Most lenders require you to set up an escrow account to cover these bills when they come due. These escrow payments would be paid monthly with your principal and interest payment. Most lenders will offer you the option for an Escrow Waiver for you taxes and insurance. IF you opt for this, you may want to set one up for yourself to insure the funds are set aside for these important expenses.
State & Local Fees – Other state and local mortgage taxes and fees may apply.