Let’s talk about closing costs—a detail too many buyers overlook until the last minute. After 35 years in this industry, I’ve seen how these costs can catch even seasoned buyers off guard. Closing costs are separate from your down payment and typically need to be paid upfront to finalize your mortgage. They cover a range of lender, property, legal, tax, insurance, and escrow fees. Most buyers in the US can expect these costs to run about 2%-5% of the loan amount (not the purchase price), so it’s essential to budget a bit beyond that initial down payment.
Common charges include origination or underwriting fees, appraisal, inspection, survey, title work, attorney costs, recording fees, prepaid taxes, insurance, and the first boost to your escrow account. Usually, buyers cover most closing costs while sellers handle their own—though in a slower market, you might see seller concessions, sometimes through a higher offer price.
My best advice? Don’t let these fees drain your savings or create unwelcome surprises. Compare lender estimates, review your final disclosure early, and don’t hesitate to ask about credits or assistance. Keep a sharp eye out for duplicate fees. The difference between a smooth closing and a stressful one often comes down to preparation—and that’s where experience matters most.
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