What closing costs include
Costs may include lender origination and underwriting charges, appraisal and credit-report fees, title services, settlement or attorney fees where customary, recording and transfer taxes, prepaid interest, homeowners insurance, property-tax adjustments, and initial escrow deposits. Which items apply depends on the loan, property, location, and transaction.
A planning range is not a quote
The CFPB says closing costs commonly range from about 2% to 5% of the home price, excluding the down payment, but your actual amount can fall outside that range. Treat it as an early planning estimate, then use lender and settlement-provider documents for the real numbers.
Understand Loan Estimate and Closing Disclosure
After receiving a mortgage application, a lender generally must provide a Loan Estimate within three business days. The Closing Disclosure gives final loan terms and closing costs and generally must be received at least three business days before closing. Compare the two and ask about unexplained changes.
Calculate cash to close
Cash to close is not simply the sum of every fee. The calculation can include the down payment and closing costs, then subtract deposits, seller credits, lender credits, and other adjustments. Review the exact cash-to-close section on your Loan Estimate and Closing Disclosure.
Ways to compare and plan
Request comparable written estimates from multiple lenders. Ask which services you can shop for, whether points are included, whether lender credits increase the rate, and what amounts are estimates versus fixed charges. Keep a reserve for moving and early home repairs.
Useful tools and related guides
Frequently asked questions
Are closing costs included in the down payment?
No. The down payment is the portion of the purchase price you pay upfront. Closing costs are separate transaction and loan charges, though both affect cash to close.
Can a seller pay closing costs?
A seller may agree to credits toward eligible buyer costs, subject to the purchase contract, loan-program limits, and applicable rules. Do not assume a seller credit is available until it is negotiated and approved.
When do I receive the Closing Disclosure?
For most covered mortgage transactions, the lender must ensure you receive it at least three business days before closing.
Official resources
Use these primary sources to confirm current program rules and disclosures. Loan terms and eligibility can vary.
This page is general educational information, not a mortgage offer, legal advice, tax advice, or a commitment to lend. Program requirements, lender overlays, rates, fees, and local taxes can change. Confirm details with the relevant agency, local authority, and licensed mortgage professional.