Home Buyer Closing Costs:
A Detailed Breakdown

I compare prices when I shop. My wife teases me about it when we’re in a store and she catches me opening my calculator app. In her defense, I can go a bit over-the-top sometimes. The fact is, I simply want to know that I’m not overpaying for something. I want to be wise with the money God has provided. Sometimes my quick calculations do pay off though—[FYI: the per-diaper price for Luvs size 3 is higher when you buy the 96-count box than it is when you buy the 34-count plastic pack]. Most of the time, I just end up bugging my wife.Because of my price-comparing tendencies, I can empathize with would-be home buyers who are reluctant because of the unknowns surrounding closing costs. Even with rates on the rise, some may feel that all of the figuring and calculating is still just a tad overwhelming. Nonetheless, if you’re planning to buy a home in the next 30 years, you might want to do it this year while rates are still historically low. For all the planners and price-shoppers out there, here’s a breakdown that should help you to better understand closing costs. If you experience some sticker shock, well, better now than at the closing table.



These are the major closing costs you’ll run into from the time you make an offer until the day you close on the purchase of your new home. Keep in mind, this is NOT a list of ALL the costs you’ll incur when you buy a home. For example, you may find a home that’s perfect—except for that carpet in the master bedroom. So, you may decide to buy the home and immediately replace the carpet. You won’t find “carpet” on this list. This is simply a list of all the closing costs related to inspecting your new home, getting a loan, and closing on the purchase.

For this closing costs estimate, I assumed a scenario based on current rates for a pre-qualified buyer with a 720 credit score, good debt-to-income ratio, a 30yr fixed rate conventional loan, with a 5% down payment and a $200,000 purchase price. Obviously, your closing costs will vary depending on your credit score, debt-to-income ratio, down payment amount and purchase price. If you want me to create a closing costs estimate tailored specifically for you, I’d be happy to do so. Simply fill out the contact form on this page and I’ll get in touch with you soon. Keep in mind, while the closing costs below are largely based on real information from multiple industry sources (lenders, title companies, home inspectors, appraisers) they are approximations, and so you should remember–this is only an estimate. If you find this to be helpful, please share it with others.

Closing Costs Estimate