Closing ProcessHomebuying Glossary
Closing Costs
The fees and expenses, beyond the down payment, due when you finalize your home purchase.
In plain English
Closing costs typically run 2%–5% of the loan amount and include lender fees, title insurance, appraisal and inspection fees, prepaid taxes and insurance, and recording fees. They're paid at closing, separately from your down payment.
Why it matters
Budgeting for closing costs on top of your down payment is one of the most commonly underestimated parts of buying a home.
Where you'll run into it
Guides and tools on TheBuyingPath that cover closing costs in context.
Related terms
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