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Most first-time buyers budget for a down payment, but many are surprised by something called closing costs.
What are closing costs?
Closing costs are the fees and expenses—beyond the price of the home—that you pay when finalizing the purchase.
What’s included?
Closing costs often cover:
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Lender fees (loan origination, underwriting)
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Appraisal and inspection fees
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Title search and title insurance
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Homeowners insurance
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Taxes and government fees
How much should you expect?
On average, closing costs range from 2–5% of the purchase price. So, for a $200,000 home, closing costs could run between $4,000 and $10,000.
Can you plan ahead?
Yes! Your lender will provide an estimate early in the process so you aren’t caught off guard. In some cases, sellers may even agree to contribute toward closing costs.
Takeaway: Closing costs are a normal part of buying a home, and planning for them makes the process smoother and less stressful.
If you’re budgeting for your first home, I can walk you through what to expect so there are no surprises.
