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What Are Closing Costs?
Closing costs catch a lot of buyers off guard. Here's a clear, simple explanation of what they are, what they cover, and how to plan for them.
Video coming soon
The key takeaways are below in the meantime.
Written by Bri Bond-Erwin
Key Takeaways
- Closing costs are fees and expenses required to complete a real estate transaction, in addition to the purchase price
- For buyers, they typically total 2–5% of the loan amount
- Common buyer costs include lender fees, title insurance, prepaid insurance, and recording fees
- Sellers pay real estate commissions and other fees from the sale proceeds
- Buyers can sometimes negotiate for the seller to cover part of their closing costs (seller concessions)
- Your lender is required to give you a Loan Estimate early in the process that outlines expected costs
- Earnest money is credited toward your closing costs at closing. It is not an extra expense
Transcript will be available when the video is recorded.
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