Closing costs usually come to 2–5% of your loan amount, and you pay them on top of your down payment. On a $300,000 home with 5% down, the loan is $285,000, so expect roughly $5,700–$14,250.
Closing cost estimator
Estimate your closing costs and the cash you’ll bring on closing day.
Cash to close = down payment + closing costs − seller concessions − lender credits − earnest money already paid. Prepaids (first-year insurance, escrow deposits) are included in the closing-cost percentage.
Estimates for education only. Your Loan Estimate shows your real numbers.
What you’re paying for
| Category | Examples |
|---|---|
| Lender fees | Origination or underwriting fee, discount points (optional) |
| Third-party services | Appraisal, credit report, survey (in some states) |
| Title and escrow | Title search, lender’s title insurance, escrow or settlement fee |
| Government fees | Recording fees, transfer taxes (in some states) |
| Prepaids | First year of homeowners insurance, prepaid interest, property tax deposits into escrow |
Prepaids aren’t really fees. They’re bills you’d pay anyway, collected up front — which is often why the total looks bigger than people expect.
The home inspection usually isn’t on this list. You normally pay the inspector directly (often $300–$500) before closing, so budget for it separately.
Who pays what
Some costs are split by local custom, and the custom varies by state and even county. Transfer taxes, the owner’s title insurance policy and the escrow or settlement fee can fall on the buyer, the seller, or both. Your agent or the title company can tell you what’s normal where you’re buying.
Your own agent’s fee is negotiated in your buyer agreement. It may be paid by the seller as a concession, or by you at closing, so check where it shows up on your Loan Estimate and Closing Disclosure.
When you’ll see the numbers
- Loan Estimate: your lender has to send it within 3 business days of your application. Get one from 2–3 lenders and compare them line by line.
- Closing Disclosure: you’ll get it at least 3 business days before closing. Compare it with your Loan Estimate and ask about any line that went up.
- If something big changes — the APR rises by more than about 1/8 of a percentage point, the loan product changes, or a prepayment penalty is added — you get a corrected Closing Disclosure and a new 3-business-day wait.
How to lower them
- Shop lenders. Origination fees and rates vary more than most buyers expect.
- Ask for seller concessions. In a slower market, the seller may agree to cover part of your closing costs.
- Ask about lender credits. A slightly higher rate can come with a credit toward closing costs. Compare the total cost over the years you expect to keep the loan.
- Look for assistance programs. Many state housing agencies offer closing-cost help to first-time buyers.
- Shop the services you can shop for. Your Loan Estimate lists them under “Services You Can Shop For” — often title and settlement services. They’re still required, but you can choose a cheaper provider.
Your cash to close
Cash to close = down payment + closing costs − credits. Credits include seller concessions, lender credits, and your earnest money deposit: you already paid it when your offer was accepted, so it counts toward what you owe.
Before you wire any money
Scammers send fake wiring instructions that look like they come from your title company or agent. Before you send your cash to close, call the title company at a phone number you already have — not one from the email — and confirm the account details out loud.
Want the line-by-line version? Module 6 of the HomeLooker course includes a Loan Estimate comparison tool and a closing cost worksheet. See the course.
$47 one-time · 30-day money-back guarantee
Sources: CFPB Loan Estimate explainer, CFPB Closing Disclosure explainer.
Educational content only, not financial or legal advice.
Down payments, the real monthly cost, inspections and closing day, explained simply. You’ll also get occasional emails about buying a home and the course. No spam, unsubscribe anytime.