Closing costs catch a lot of first-time buyers off guard. You save up for the down payment and then discover there is another big stack of fees due at closing. Let me walk you through exactly what each fee covers and how much you can expect to pay at different price points.
Complete Closing Cost Breakdown
Here is every fee you can expect to see on your closing disclosure, with real dollar amounts for a $350,000 home purchase:
Lender Fees (typically $2,000 to $4,000)
- Loan origination fee: 0.5% to 1% of loan amount ($1,750 to $3,500)
- Application/processing fee: $300 to $500
- Underwriting fee: $400 to $800
- Credit report fee: $30 to $50
- Appraisal fee: $500 to $700
Title & Escrow Fees (typically $1,500 to $3,500)
- Title search: $200 to $400
- Title insurance (lender's policy): $800 to $1,500
- Owner's title insurance (optional but recommended): $400 to $800
- Settlement/closing fee: $300 to $600
- Recording fees: $100 to $200
- Survey: $350 to $800
Prepaid Items & Escrow (typically $2,000 to $5,000)
- Prepaid property taxes: 2 to 6 months of taxes ($550 to $1,650)
- Prepaid homeowners insurance: First full year ($3,000 to $4,500)
- Prepaid mortgage interest: Interest from closing date to end of month ($500 to $1,000)
- Initial escrow deposit: 2 to 6 months of taxes and insurance ($800 to $2,000)
Government Fees
- Documentary stamp tax (state tax on notes): $3.50 per $1,000 of loan amount (~$1,050 on a $300K loan)
- Intangible tax: $2.00 per $1,000 of loan amount (~$600 on a $300K loan)
Closing Costs by Home Price
| Home Price | 2% Range | 5% Range |
|---|---|---|
| $250,000 | $5,000 | $12,500 |
| $350,000 | $7,000 | $17,500 |
| $500,000 | $10,000 | $25,000 |
What Is Negotiable?
Not every fee is set in stone. Here is what you can negotiate or reduce:
- Seller concessions: You can ask the seller to pay some of your closing costs. FHA allows up to 6% seller concessions. On a $350,000 home, that is $21,000 in potential seller contributions. Learn how seller concessions work.
- Lender credits: Your lender can cover closing costs in exchange for a slightly higher interest rate. Run the math to see if this makes sense for your timeline.
- Shop around: Title companies, lenders, and appraisers all have different rates. A good buyer's agent can recommend cost-effective providers.
How Down Payment Assistance Helps With Closing Costs
The Hometown Heroes program offers up to $35,000 in combined down payment and closing cost assistance. That is enough to cover your entire down payment and closing costs on most homes under $400,000. The FL Assist program offers $10,000.
Many of my buyers use these programs to walk into closing with little to no cash out of pocket, despite closing costs. Visit our financing page for full program details and eligibility requirements.