Closing costs for buyers
Cash to close is more than the down payment. Here is a clear checklist of common costs so you can prepare with fewer surprises.
Typical buyer costs
- Lender fees and appraisal.
- Title services and owner or lender policies as customary.
- Escrows and prepaid items for taxes and insurance.
- Recording fees and transfer taxes where applicable.
- Optional rate points if you choose to buy the rate down.
Ways to manage cash to close
- Ask your lender about credits for choosing a slightly higher rate.
- Negotiate seller credits when the market allows.
- Compare title quotes and homeowners insurance policies.
Quick estimate method
- Use one and a half to three percent of price as a starting range.
- Request a loan estimate from your lender early.
- Update the numbers when you pick a home and lock a rate.