Closing Costs
Expect to pay 2%–5% of the purchase price in closing costs. On a $300k home that’s $6k–$15k. Use the breakdown below to budget—and learn 9 ways to pay less.
Average Closing Costs by Loan Type
| Loan Type | Avg % of Loan | Cost on $300k |
|---|---|---|
| Conventional 20% down | 2.1% | $6,300 |
| FHA 3.5% down | 2.5% | $7,500 |
| VA 0% down | 2.3% | $6,900 |
| USDA 0% down | 2.4% | $7,200 |
What’s Included
- Origination fee: 0.5%–1% of loan (lender’s processing)
- Appraisal: $500–$700
- Credit report: $30–$50
- Title search & insurance: $1k–$2k
- Escrow/signing: $400–$800
- Recording fee: $50–$250
- Prepaid items: 3 months of taxes, insurance, and daily interest
Who Pays What?
- Buyer: Loan fees, appraisal, title insurance (lender’s policy), prepaid escrows
- Seller: Title insurance (owner’s policy), transfer tax, realtor commissions
- Either: Home warranty, HOA transfer fees, and closing-date adjustments—negotiable
9 Ways to Reduce or Eliminate Closing Costs
- Shop lender credits: Accept a 0.25% higher rate in exchange for thousands in credits.
- Ask the seller: Request 2%–3% seller concession toward closing costs (common in buyer’s markets).
- Use a no-cost loan: Some lenders waive origination and processing fees (rate will be slightly higher).
- Close end-of-month: Reduces per-diem interest—saves $100–$400.
- Compare title companies: Fees can vary by $500–$1,000.
- Bundle insurance: Some insurers give 10%–15% discounts if you combine auto and home policies.
- Ask employer: Many companies offer $1k–$5k relocation closing-cost credits.
- Use down-payment assistance: State programs often include closing-cost grants.
- Roll costs into loan: FHA 203(b) and some conventional products let you finance closing costs if appraisal supports it.
Tip: Get a Loan Estimate from at least 3 lenders within 3 days of applying. Page 2 shows every closing cost in black-and-white—use it to negotiate.
Printable Closing-Cost Checklist
Copy-paste this list into a note on your phone and check items off as you receive final numbers:
□ Loan origination fee □ Processing/underwriting fee □ Appraisal fee □ Credit report □ Tax transcript □ Flood certification □ Title search □ Lender’s title insurance □ Owner’s title insurance □ Escrow/signing fee □ Recording fee □ Home inspection (optional but smart) □ Pest inspection (if required) □ Survey (if required) □ HOA transfer/estoppel fee □ Homeowner insurance 1st year premium □ Property taxes (prorated) □ Prepaid interestEstimate Your Total Cash Needed