Closing costs are fees you pay when finalizing your home purchase. They can add $5,000-15,000 to your upfront costs. Here's what you need to know.
How Much are Closing Costs?
Typically 2-5% of the home's purchase price. For a $300,000 home, expect $6,000-15,000 in closing costs.
Common Closing Costs
- Loan origination fee (0.5-1% of loan)
- Appraisal fee ($300-600)
- Title search and insurance ($1,000-2,000)
- Attorney fees
- Recording fees
- Home inspection
- Prepaid interest and taxes
Who Pays?
Buyers typically pay most costs, but some can be negotiated. In some states, sellers pay title fees.
How to Reduce Closing Costs
- Shop around for services
- Negotiate with seller
- Ask lender for credits
- Compare loan estimates