Published on April 22, 2026
Most first-time buyers plan for the down payment and then get blindsided at closing. Typical closing costs run 2–5% of the purchase price. On a $400,000 home that is $8,000–$20,000 on top of the down payment.
Lender fees ($1,500–$3,000)
Origination, underwriting, credit report, and sometimes a discount point. Always ask for a Loan Estimate from two lenders and compare line by line — these fees are negotiable.
Third-party fees ($1,500–$4,000)
Appraisal, title search, title insurance, survey, recording fees. Title insurance in particular varies a lot by state and carrier — shop it.
Prepaids and escrow ($2,000–$8,000)
Prepaid interest, homeowner's insurance premium, and an escrow cushion for future property taxes + insurance. The lender collects these at closing.
Buyer's agent compensation
Depending on your buyer-agent agreement, you may be paying your agent directly at closing rather than having it come out of the seller's side. Ask before you sign.
Negotiable: seller concessions
In many markets sellers will credit 1–3% toward buyer closing costs, especially on FSBO deals where the seller is already ahead on commission savings. Ask.