What you actually pay at closing.
Beyond down payment, closing costs are the second-largest cash requirement at purchase. Knowing the categories helps you plan and negotiate.
Direct answer
Closing costs typically run 2–5% of the purchase price and include lender fees, title, escrow, taxes, and prepaids. Sellers may cover a portion depending on the contract.
Key takeaways
- 01
Closing costs commonly range 2–5% of the purchase price.
- 02
Prepaids like taxes and insurance are part of your cash to close.
- 03
Seller concessions can cover a portion, subject to program caps.
Categories of cost
Lender fees, third-party fees (title, escrow, appraisal), government charges, and prepaids.
Reducing costs
Compare Loan Estimates, negotiate concessions where market conditions allow, and consider lender credits.
Related calculators
Related loan programs
Frequently asked
Can seller concessions cover all costs?
Programs cap concessions. Whether the seller will contribute depends on market conditions and the offer.
What are prepaids?
Property tax and insurance funds collected at closing to establish your escrow account.
Is the appraisal part of closing costs?
Usually yes, though it is often paid earlier in the process.
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