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Fees, fees & more fees.... Be prepared for your closing costs.

August 22, 2017

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Fees, fees & more fees.... Be prepared for your closing costs.

August 22, 2017

Don’t risk getting to the closing table and not having enough cash to cover your closing costs. You will find yourself leaving without your dream home and you will likely be a little embarrassed. With so many parties involved in the transaction of buying a home it is easy to overlook some of the closing costs and underestimate how much you need.


From the day you sign your purchase agreement, multiple different parties start working together to complete everything needed for closing. Your real estate agent provides the purchase agreement to all necessary parties and acts as a liaison to ensure everything is completed correctly and on time. Your lender begins the loan process so you will have the necessary funds at closing. The closing attorney/title company start the legal process and drafts the necessary documents to legally complete the sale and transfer ownership of the home.


With all of the work each of these parties are putting in to complete the purchase of your home comes fees, more commonly known as your closing costs. While closing costs can typically be estimated to be 2%-5% of your home value, costs will vary based on the companies you choose and the state you are purchasing in. I always recommend assuming 5% until you have chosen your home, lender, & closing attorney. Then reach out directly to the source and have them provide you with their costs.


As you start to get closer to finding your dream home, use this list as a reference and start calculating your estimated closing costs. Then when you get to the closing table you will be fully prepared!


Lender Fees

  • Origination Fee or Broker Fee

  • Discount Fee

  • Loan Processing Fee

  • Underwriting Fee

  • Application Fee

  • Rate Lock Fee

  • Credit Report Fee

  • Flood Certification

  • Tax Service Fee

  • Wire Transfer Fee

  • Appraisal

Attorney Fees

  • Title Search

  • Title Insurance

  • Escrow Fee

  • Notary Fee

  • Survey Fee

  • Attorney, closing & settlement fees


Government Fees

  • Recording Fee

  • Transfer Tax


Escrow & Prepaid Loan Expenses

  • Prorated Property Taxes

  • Mortgage Insurance

  • Prepaid Interest

  • Homeowners Insurance

  • Flood Insurance

  • Down Payment for loan


3rd Party Services

  • Wire transfer fee

  • Home Inspection

  • Other Inspection (i.e. termites)



Have you incurred any additional costs at closing? Please let us know under the comments section!




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The information provided on this site is designed to provide helpful information on the subjects discussed. It is not meant to be relied on as a sole source of information. Real estate can vary from state to state and all readers should confirm the information read on this website with local professionals.