Closing Costs

Fees and charges paid at closing in addition to the down payment. Typically 2-5% of loan amount.

Closing costs include lender fees (origination, processing, underwriting), title fees (lender's and owner's title insurance, closing agent fee), recording fees, transfer taxes, prepaid items (first year homeowners insurance, escrow setup, prepaid interest), and appraisal. Total typically 2-5% of loan amount. Buyer can negotiate seller credits to cover part of closing costs (subject to program caps).