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How much are closing costs for a home buyer, and who usually?
I’m budgeting to buy a home, but I keep hearing about closing costs. What should buyers expect to pay, and are there ways to reduce or negotiate these costs?
Asked By Jon | Wasco, CA | 22 views | Buying | Updated 1 day ago
Answers (4)
JACQUELYNE HICKS
eXp Realty
Closing costs for a home buyer typically range from about 2%–5% of the purchase price of the home.
For example: On a $300,000 home, closing costs are usually around $6,000–$15,000.
What Closing Costs Usually Includes: Loan origination and lender fees, appraisal, title search and title insurance, attorney or closing fees, taxes and homeowners insurance, recording fees
The buyer pays most of the closing costs, however, in many transactions buyers ask the seller to contribute toward closing costs as part of the offer. This is called seller concessions, and it’s very common—especially for first-time buyers.
For example: On a $300,000 home, closing costs are usually around $6,000–$15,000.
What Closing Costs Usually Includes: Loan origination and lender fees, appraisal, title search and title insurance, attorney or closing fees, taxes and homeowners insurance, recording fees
The buyer pays most of the closing costs, however, in many transactions buyers ask the seller to contribute toward closing costs as part of the offer. This is called seller concessions, and it’s very common—especially for first-time buyers.
- 19 hours ago
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Trevor Mapes
HomeSmart Pros Real estate
Great question Jon and super smart that you're budgeting for this ahead of time because closing costs catch a lot of buyers off guard!
As a buyer you can generally expect to pay somewhere between 2% and 5% of the purchase price in closing costs. So on a $400,000 home you're looking at roughly $8,000 to $20,000 on top of your down payment. I know that sounds like a lot but let me break down what you're actually paying for.
You've got lender fees, things like origination fees, underwriting, and processing. Then there's title insurance, escrow fees, your appraisal, home inspection, and prepaid items like homeowners insurance and property taxes. Those prepaids are the ones that really sneak up on people.
Now here's the good news. Yes you can absolutely negotiate some of this. A few ways to reduce what you're paying out of pocket:
Ask the seller to cover closing costs. This is called a seller concession and it's very common, especially if the home has been sitting on the market or the seller is motivated.
Ask your lender about a lender credit. You can sometimes take a slightly higher interest rate in exchange for the lender covering some of your closing costs upfront. Depends on your situation but worth asking.
Shop around for title and escrow. Not everyone knows you can do this but those fees are not always set in stone.
First time buyer programs sometimes include closing cost assistance too so make sure you ask your lender about that.
Bottom line, go in with eyes open and a good agent and lender in your corner and you'll be just fine!
As a buyer you can generally expect to pay somewhere between 2% and 5% of the purchase price in closing costs. So on a $400,000 home you're looking at roughly $8,000 to $20,000 on top of your down payment. I know that sounds like a lot but let me break down what you're actually paying for.
You've got lender fees, things like origination fees, underwriting, and processing. Then there's title insurance, escrow fees, your appraisal, home inspection, and prepaid items like homeowners insurance and property taxes. Those prepaids are the ones that really sneak up on people.
Now here's the good news. Yes you can absolutely negotiate some of this. A few ways to reduce what you're paying out of pocket:
Ask the seller to cover closing costs. This is called a seller concession and it's very common, especially if the home has been sitting on the market or the seller is motivated.
Ask your lender about a lender credit. You can sometimes take a slightly higher interest rate in exchange for the lender covering some of your closing costs upfront. Depends on your situation but worth asking.
Shop around for title and escrow. Not everyone knows you can do this but those fees are not always set in stone.
First time buyer programs sometimes include closing cost assistance too so make sure you ask your lender about that.
Bottom line, go in with eyes open and a good agent and lender in your corner and you'll be just fine!
- 20 hours ago
- Helpful (0)
- Unhelpful (0)
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Paul Avratin
United Real Estate Experts
Buyer Closing Costs Explained
Closing costs for a buyer can vary depending on how the home is purchased—whether it’s cash or financed with a loan.
Cash Purchase:
Typically ranges from about 0.75% to 1.25% of the purchase price. These costs usually include title work, recording fees, and closing/settlement fees.
Loan Purchase:
Closing costs can range anywhere from 3% to 6% of the purchase price, depending on several factors such as:
The type of loan (Conventional, FHA, VA, etc.)
The amount of the down payment
Lender fees and requirements
Prepaid items like insurance and property taxes
Every lender structures fees a little differently, so costs can vary from one lender to another.
The best way to know your exact numbers is to get a loan estimate from a lender, which will break down all costs involved in the purchase.
Closing costs for a buyer can vary depending on how the home is purchased—whether it’s cash or financed with a loan.
Cash Purchase:
Typically ranges from about 0.75% to 1.25% of the purchase price. These costs usually include title work, recording fees, and closing/settlement fees.
Loan Purchase:
Closing costs can range anywhere from 3% to 6% of the purchase price, depending on several factors such as:
The type of loan (Conventional, FHA, VA, etc.)
The amount of the down payment
Lender fees and requirements
Prepaid items like insurance and property taxes
Every lender structures fees a little differently, so costs can vary from one lender to another.
The best way to know your exact numbers is to get a loan estimate from a lender, which will break down all costs involved in the purchase.
- 21 hours ago
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Patricia Lucero,
Keller Williams
Great question!
For a $400,000 home in Kern County, here is a very general estimate of total cash needed, including down payment + closing costs.
If putting 3% down
• Down payment: $12,000
• Closing costs (2–5%): $8,000–$20,000
• Estimated total: $20,000–$32,000
If putting 5% down
• Down payment: $20,000
• Closing costs: $8,000–$20,000
• Estimated total: $28,000–$40,000
If putting 10% down
• Down payment: $40,000
• Closing costs: $8,000–$20,000
• Estimated total: $48,000–$60,000
Down payment requirements vary depending on the loan program. Some loans like VA or USDA may allow 0% down, while conventional, investment, ITIN, or private money loans may require higher down payments.
Closing costs can sometimes be negotiated with seller credits, depending on the market and offer terms.
This is a very general estimate based on the median home price in Kern County, and actual numbers will vary depending on the loan program, purchase price, taxes, and insurance.
If you’re thinking about buying, reviewing your situation early with a lender or agent is usually free and can help you create a plan before starting the home search.
For a $400,000 home in Kern County, here is a very general estimate of total cash needed, including down payment + closing costs.
If putting 3% down
• Down payment: $12,000
• Closing costs (2–5%): $8,000–$20,000
• Estimated total: $20,000–$32,000
If putting 5% down
• Down payment: $20,000
• Closing costs: $8,000–$20,000
• Estimated total: $28,000–$40,000
If putting 10% down
• Down payment: $40,000
• Closing costs: $8,000–$20,000
• Estimated total: $48,000–$60,000
Down payment requirements vary depending on the loan program. Some loans like VA or USDA may allow 0% down, while conventional, investment, ITIN, or private money loans may require higher down payments.
Closing costs can sometimes be negotiated with seller credits, depending on the market and offer terms.
This is a very general estimate based on the median home price in Kern County, and actual numbers will vary depending on the loan program, purchase price, taxes, and insurance.
If you’re thinking about buying, reviewing your situation early with a lender or agent is usually free and can help you create a plan before starting the home search.
- 20 hours ago
- Helpful (0)
- Unhelpful (0)
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