What Are Closing Costs When Buying a Home?
What Are Closing Costs When Buying a Home?
Today we’re breaking down a big question I get all the time—what are closing costs when buying a home?
Buying a home is exciting, but there are a few expenses outside of your down payment that you’ll want to plan for—and that’s where closing costs come in.
✅ So, what are closing costs?
They’re the fees and expenses you pay at the end of your real estate transaction—basically everything it takes to transfer ownership of the home into your name.
Here are some of the most common ones:
Lender Fees – Things like loan origination or underwriting fees for processing your mortgage.
Appraisal & Credit Report – The lender needs to verify the value of the property and your creditworthiness.
Title & Escrow – This covers title searches, title insurance, and escrow services to make sure the transfer is legal and smooth.
Prepaid Costs – Like homeowners insurance, property taxes, and sometimes interest, paid upfront to get you started.
Recording Fees – Charged by your county to officially record the property in your name.
💰 How much should you expect?
Typically, closing costs range from 2% to 5% of the purchase price of your home. So on a $300,000 home, that could be anywhere from $6,000 to $15,000.
✨ Good news: Sometimes sellers or special loan programs can help cover part of those costs, so you don’t always have to come out of pocket for everything.
📌 Bottom line: Closing costs are simply the necessary expenses to finalize your home purchase. Knowing about them upfront helps you plan better and avoid surprises at the closing table.
👨💼 If you’re thinking about buying a home and want a breakdown of what your specific closing costs might look like, reach out—I’d be happy to walk you through it.”
