What are permissible closing costs in a residential mortgage loan in Rhode Island?

Permissible closing costs in a residential mortgage loan in Rhode Island encompass expenses that are legitimate and necessary for finalizing the mortgage transaction. Title insurance protects the lender and borrower from any future claims against the property; appraisal fees ensure that the property’s value is assessed accurately for loan approval, and closing attorney fees are necessary to facilitate the closing process and provide legal counsel relevant to the transaction. These expenses are integral to the mortgage process, consistent with industry standards, and are typically required as part of the closing costs.

In contrast, expenses such as property taxes and homeowners insurance might not be considered "closing costs" in the sense of upfront fees associated with securing the loan. Home inspection and landscaping fees are generally related to the property and not directly tied to the transaction itself; they may be incurred before or after closing rather than being part of the actual costs to close the mortgage. Real estate commissions and marketing costs are expenses associated with selling the property rather than obtaining a mortgage and do not directly pertain to closing costs for the buyer. Thus, the correct answer focuses on costs directly linked to securing the loan and completing the transaction efficiently and legally.