Closing Costs in a Nutshell

Breaking down the different fees that factor into your closing costs.

There are more costs to buying a house than the down payment, and new buyers might not be familiar with those costs. Because of this, we are asked about closing costs all the time. There’s a difference between a down payment, which is based on your loan type, and closing costs, which are the costs of doing business. Today we’ll go over closing costs and help you understand them. 

The costs associated with a loan are the processing fee, origination fee, appraisal fee, title fee, and escrow fee. Those components are a major segment of your closing costs. Your closing cost will usually be about 5% to 9% of the purchase price. Property taxes and homeowner’s insurance make up another large segment. Typically, a year’s worth of taxes and insurance get paid upfront, and a few extra months’ worth are put into an escrow account.

If you have any questions, reach out to us by email. We’d be happy to give you some answers, and we could even help estimate your closing costs.