Closing costs, explained

Closing costs are the fees required to finalize your loan and transfer the home — separate from your down payment. They typically run a few percent of the loan amount, though it varies by state and loan.

What's usually included

• Lender fees — origination/underwriting, and any optional discount points.
• Third-party fees — appraisal, title insurance, recording, settlement.
• Prepaids & escrow — upfront homeowners insurance, property taxes, and interest.

Ways to reduce what you pay at the table

• Ask about seller concessions — sellers can often contribute toward your costs.
• Compare a lender credit (slightly higher rate, lower upfront cost) against paying costs in cash.
• Shop services you control, like title.

Your Loan Estimate lays every cost out within three days of applying — and we'll walk you through it line by line so there are no surprises.

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