Jeni VanOrnum | Real Estate Insights & Education

Closing costs catch many first-time buyers off guard. Let’s break down what you’ll actually pay when purchasing your first home.

What Are Closing Costs?

These are fees associated with finalizing your home purchase, typically 2-5% of the purchase price. On a $300,000 home, expect $6,000-$15,000.

Typical Closing Costs Include:

Lender Fees:

• Origination fee (0.5-1% of loan amount)
• Application fee
• Underwriting fee
• Credit report fee

Third-Party Fees:

• Appraisal ($300-$600)
• Home inspection ($300-$500)
• Title search and insurance
• Survey fee
• Attorney fees (varies by state)

Prepaid Items:

• Property taxes
• Homeowners insurance
• Prepaid interest
• HOA dues (if applicable)

Government Fees:

• Recording fees
• Transfer taxes

Who Pays What?

Buyers and sellers typically split certain costs, but this is negotiable. In competitive markets, buyers often cover more.

Ways to Reduce Closing Costs

• Shop around for services like insurance and title companies
• Request seller concessions (seller pays portion of closing costs)
• Close at month-end to reduce prepaid interest
• Review your Loan Estimate carefully for accuracy

The Closing Disclosure

You’ll receive this document at least three business days before closing. Review it carefully and compare to your initial Loan Estimate.

Budget Accordingly

Beyond closing costs, you’ll also need your down payment and moving expenses. Plan for at least 5-8% of the purchase price total.

I’m Here to Help

I’ll provide estimates of your closing costs early in the process so there are no surprises on closing day.