Closing Cost Guide
Understand the costs that come with buying a home before closing day arrives.
Closing costs are one of the final steps in the home buying process. Knowing what to expect ahead of time can help you budget with confidence and avoid surprises on closing day.
What are closing costs?
Closing costs are the fees and expenses associated with purchasing a home. They are typically paid on or before your closing date and can include lender fees, title services, taxes, insurance, and more.
While every transaction is different, many buyers can expect closing costs to range from approximately 2%-5% of the home’s purchase price, depending on financing, location, and other factors
Common Closing Costs
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Loan Origination Fees
Fees charged by your lender to process your mortgage.
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Appraisal Fee
The lender orders an appraisal to determine the home’s market value.
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Home Inspection
Although often paid before closing, inspections are an important part of your overall costs.
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Title Insurance
Protects buyers and lenders from title issues that may arise after closing.
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Recording & Government Fees
Local government fees associated with recording the property transfer.
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Prepaid Property Taxes
Some property taxes may be collected at closing.
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Homeowners Insurance
Most lenders require your first year’s premium to be paid before closing.
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Escrow & Closing Services
Fees associated with handling funds and completing the closing process.
Can sellers help with closing costs?
In some transactions, sellers may agree to contribute toward a buyer’s closing costs as part of the purchase agreement. These arrangements depend on the terms of the offer, negotiations, loan program requirements, and current market conditions.
Your real estate professional can help you understand what may be possible based on your specific situation.
Ways Buyers Prepare
Save Ahead
Start setting aside funds early in your home-buying journey.
Ask Your Lender
Request a Loan Estimate so you understand your anticipated costs.
Explore Assistance Programs
Some buyers may qualify for down payment or closing cost assistance programs
Plan for Moving Expenses
Remember to budget for moving, utility transfers, and other costs beyond closing.
Closing Cost Checklist
Loan Estimate Reviewed
Closing Disclosure Received
Certified Funds Ready (if applicable)
Homeowners Insurance Purchased
Final Walk-Through Completed
Closing Day Scheduled
Frequently Asked Questions
Are closing costs the same as a down payment?
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No. Your down payment goes toward the purchase of the home, while closing costs cover the fees associated with completing the transaction
Can closing costs be financed?
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Some loan programs may allow certain closing costs to be financed or covered in other ways. Your lender can explain your available options.
When do I know my exact closing date?
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You’ll receive a Closing Disclosure before closing that outlines your final costs.
Ready to buy with confidence?
Whether you’re purchasing your first home or your fifth, we’re here to guide you through every step of the process and answer your questions along the way.
Closing costs can feel overwhelming at first, but don’t worry — we’ll help you understand each step so you know what to expect before closing day.