Which of the following items is typically not included in the closing costs paid by the lender?

In real estate transactions, closing costs can encompass a variety of fees associated with finalizing a mortgage. These costs are generally required to be paid by the borrower at the closing of the loan.

The appraisal fee, credit report fee, and settlement fee are essential components of the closing costs. The appraisal fee is necessary for the lender to determine the value of the property being financed, the credit report fee assesses the borrower's creditworthiness, and the settlement fee pertains to the services provided during the closing process.

In contrast, pre-paid taxes are not classified in the same manner as those fees directly associated with the lender's processing of the loan. Pre-paid taxes generally refer to property tax payments that are made in advance; while they are indeed part of the overall costs associated with homeownership, they are typically not a direct closing cost charged by the lender themselves. Instead, these payments usually go toward the local tax authorities and are considered part of the homeowner's ongoing financial responsibilities rather than an item specific to the lender's closing costs.