What they usually include
- Lender fees
- Appraisal and credit report
- Title insurance and escrow fees
- Recording fees and transfer taxes, where they apply
- Prepaid items: homeowners insurance, property taxes, and interest
How much to plan for
Closing costs commonly run about 2% to 5% of the price, depending on the loan, the location, and your choices. Your Loan Estimate shows the exact amounts within three business days of applying.
Ways to lower or cover them
- Ask the seller for a credit toward closing costs
- On a refinance, roll some costs into the new loan
- Compare options with fewer upfront costs
Frequently asked questions
When do I pay them?
At closing, usually by wire to escrow.
Can family help?
Yes, with a gift letter, depending on the loan.