Closing Costs

Closing costs are fees paid at closing when finalizing a home purchase or refinance. Typically 2-5% of purchase price, paid by buyer (some negotiable with seller).

Common closing costs:

• Loan origination fee: 0.5-1% of loan ($1,500-3,000 on $300K)
• Appraisal: $400-800
• Title insurance: $1,000-3,000
• Title search: $200-400
• Attorney/escrow fees: $500-2,000
• Recording fees: $100-300
• Property survey: $300-600
• Homeowner's insurance (first year): $1,000-2,000
• Property tax prepayment: Varies
• HOA fees (if applicable): First month/quarter

Total example on $300K home purchase:

• 3% closing costs = $9,000
• Down payment (20%): $60,000
• Earnest money (2%): $6,000
• Cash needed at closing: $63,000 ($60K + $9K - $6K earnest money)

Seller can pay some buyer closing costs (seller concessions) in negotiations. Lender provides Loan Estimate within 3 days of application showing all estimated closing costs.

Cash vs rolling into loan: Can't roll closing costs into mortgage (increases loan amount, requires appraisal support). Must pay in cash at closing.