How much are closing costs when buying a home?

Common items include lender and appraisal fees, title or settlement charges, recording fees, transfer-related charges, prepaid interest, homeowners insurance, property-tax escrows, and mortgage insurance when applicable. Some items are true transaction costs; others are prepaid expenses or initial escrow deposits for bills you would owe as a homeowner.

A seller may be able to contribute toward eligible costs, subject to the contract and loan-program limits. A lender credit may also reduce upfront costs in exchange for different pricing. A 'no-closing-cost' loan usually means costs are covered through a higher rate or added to the loan when permitted—not that the costs disappear.

Review both the total closing costs and the final cash-to-close figure. Earnest money, deposits, credits, and financed amounts affect the final number.