The Ultimate Guide to Closing Costs

Closing Costs: Just like when you purchase a car, the listed price of the home does not include the additional fees. Essentially, the “sticker price” is not the out-the-door price. For home purchases, these additional fees are lumped together and called “closing costs.”

Here are the fees you can expect to pay in the final stretch of your home purchase. 

Closing Costs Explained

Closing costs cover the expenses that finalize your home loan, whether its a purchase or a refinance. Most of the closing costs responsibility falls on the buyer. However, the seller will pay a few as well, such as their real estate agent’s commission. 

If negotiated, the seller may also cover all or part of the buyers closing costs. 

How much will you pay in closing costs?

Average closing costs run between about 2% and 5% of the loan amount. So on a $300,000 home purchase, you can expect to pay between $6,000 to $15,000. 

The most cost-effective way to handle closing costs is to pay it upfront, out-of-pocket though some choose to finance their closing costs by rolling them into the loan. However, that’s not always an option, plus it’ll end up costing more since you’ll also pay interest.

List of Buyers Closing Costs

Property-related fees

Appraisal fee: A home appraisal checks that the property is worth the amount you are borrowing. The typical cost is about $300 and $400.

Home inspection: Home inspections are usually required, especially if you’re getting a government-backed loan such as an FHA. A home inspection is also a smart move for you, the buyer, as it will reveal any potential problems before the deal is final.

If the inspection finds problems, you can use it to negotiate a lower price. Depending on how bad the issues are, you may be able to back out of the contract. Home inspection fees are about $300 to $400.

Loan-related fees

Application fee: This fee covers the cost of processing the loan, such as credit checks and administrative expenses. This fee varies depending on the amount of work it took to put process your loan. 

Our office uses digital mortgage processing, which helps to speed up the timeline as well as lower our overall expenses. We pass these savings to our clients!

Assumption fee: This only applies if the seller has an assumable mortgage in which you are taking over the remaining balance. The amount depends on what that balance is.

Attorney fees: Some states require an attorney to be present at the closing. The amount depends on how much the attorney charges per hour and how many hours they are present at the signing.

Prepaid interest: In some cases, you’ll be required to pay the interest that accrued between the settlement date and the first mortgage due date. The fee depends on the amount borrowed and your interest rate. 

Loan origination fee: Also known as an underwriting fee, administrative fee, or processing fee, this covers the evaluation and preparation of your mortgage loan. You can expect to pay about 0.5% of the amount you’re borrowing. 

Discount points: Discount points reduce your interest rate and are especially attractive if you plan on staying in your home for several years. The cost of one point equals 1% of the loan. So for a loan of $350,000, a 1-point payment would be $3,500. This fee only applies if you purchase points.

Mortgage broker fee: Brokers usually charge a commission as a percentage of your loan amount. The amount varies. 

Mortgage insurance fees

Mortgage insurance application fee: If your down payment is less than 20%, you’ll have to get private mortgage insurance (PMI). This fee varies by lender.

Upfront mortgage insurance: Some situations require borrowers to pay the first year’s mortgage insurance premium upfront. Expect it to be about 0.55% to 2.25% of the purchase price of the home.

FHA, VA, and USDA fees: If your loan is government-backed, you’ll have to pay the following fees:

  • Mortgage insurance premiums for an FHA loan
  • Guarantee fees if it’s a loan funded by the Department of Veterans Affairs or the U.S. Department of Agriculture. 

Property taxes, annual fees, and insurance

Property taxes: Buyers usually pay two months’ worth of property taxes at closing.

Annual assessments: If your homeowners’ association requires a yearly fee, you might have to pay it in one lump sum upfront.

Homeowners insurance premium: Homeowner’s insurance covers your property in case of damage. Some homeowner’s associations include it in the monthly fee, so it’s worth asking before you purchase it separately.

The amount depends on where you live and the home’s value.

Title fees

Title search fee: A title search makes sure that the person selling the house is the true owner and that there are no claims or liens against the property. It’s relatively labor-intensive, especially if the records aren’t computerized.

It’s about $200 but varies among title companies. The search fee may be included in the cost of title insurance.

Lender’s title insurance: This protects the lender in case there’s a mistake in the title search, and someone makes a claim on the property. Coverage lasts until the mortgage is paid off.

Owner’s title insurance: Similar to the above, except this insurance helps to protect you, the buyer. It lasts as long as you or your heirs own the home and costs about 0.5% to 1% of the property purchase price.

Insider tip: A discount is sometimes available if you purchase the lender and owner policies at the same time.

It may seem like it’s a lot to handle, but with preparation, all of these fees are quickly taken care of. Plus, some may even get covered by the seller! Contact us and let us show you how affordable homeownership can be. 

Share post

Search Posts

Recent Posts


  • This field is for validation purposes and should be left unchanged.

Have a Question? Talk to Our Expert.

Unlimited Mortgage Lending is here to help. If you have any questions about your dream house loan program, never hesitate to call.


This Privacy Statement describes the online information collection and use practices of the Website (“UML”) and its corporate divisions and business affiliates. This Privacy Statement does not in any way describe UML’s offline information collection and use practices, or the practices UML employs when collecting information online through means other than the above-listed Website. An example of such additional information collection practices includes but is not limited to you as a customer of Unlimited Mortgage Lending, L.L.C., or site user sending UML an email message. “We” or “us” or “our” or “UML” refers to and its owners and/or affiliates. UML is strongly committed to protecting the Privacy of our customers.


The Children’s Online Privacy Protection Act of 1998 is a United States federal law, located at 15 U.S.C. §§ 6501–6506.

The the following explains our practices with respect to the online collection and use of personal information from children under the age of 13, and provides important information on your rights under federal law with respect to such information:

We do NOT knowingly collect personally identifiable information from children under the age of 13. We screen users who wish to provide personal information in order to prevent users under the age of 13 from providing such information. If we become aware that we have inadvertently received personally identifiable information from a user under the age of 13, we will immediately delete such information from our records. If we change our collection practices in the future, we will obtain prior, verifiable parental consent before collecting any personally identifiable information from children under the age of 13. If at any time we establish or begin providing services on any website that in anyway meets the criteria of COPPA, we will ensure that full compliance is met in every aspect of COPPA.

Due to the fact we do NOT collect any personally identifiable information from children under the age of 13 we also do NOT knowingly distribute such information to any third party.

We do NOT knowingly allow children under the age of 13 to become customers, or otherwise, distribute personally identifiable contact information.

Due to the fact we do NOT collect any personally identifiable information from children under the age of 13, we do NOT condition the participation in any online activities of a child under the age of 13 on providing personally identifiable information. However, even as outlined above we do NOT knowingly allow children under the age of 13 to access and use in general.


UML its divisions and affiliates are committed to protecting your Privacy. This Privacy Statement is current as of the updated date listed above and sets forth our current privacy practices with regard to the information we collect when you or your computer interacts with our Website (s). By accessing or any affiliates or divisions, you as the end-user viewing this information and/or Website acknowledge and fully understand UML’s Privacy Statement and freely consent to the information collection and use practices described in this Privacy Statement. By submitting information to UML through this Website or otherwise, you are making an inquiry as to lending programs and services offered by UML and give UML permission to contact you through Email, fax, or telephone, or any means, even if your phone number is on a “Do Not Call” list.

If UML makes any substantive changes to this Privacy Statement we will announce it on our Website (s) and revise the current date listed. If you have provided us with the contact information, we will send you a notice to the email address we have on file for you. UML will not be responsible for inaccurate or outdated email addresses when supplying Privacy Statement updates. If you have any questions or concerns regarding this policy, contact us at Once the changes have been made, your continued use and/or access of the Website will constitute your acceptance and consent to the information collection and use practices described in the revised Privacy Statement.

4.) PARTICIPATING ADVERTISER AND MERCHANT POLICIES may contain links to websites owned and operated by unaffiliated third parties. These links are provided as a service to you as a customer and/or user and do not constitute UML’s endorsement or support of the third-party websites or the information or content contained within the third-party web sites. Related services and offerings with links from this Website have their own privacy statements that can be viewed by clicking on the corresponding links within each respective Website. Unaffiliated third parties who provide information and links through UML are encouraged to participate in industry privacy initiatives and to take a responsible attitude towards Privacy. However, since we do not have direct control over the policies or practices of participating merchants and other third parties, we are not responsible for and do not endorse the privacy practices or content of those sites. We recommend and encourage that you always review the privacy policies of any third parties before you provide any personal information or complete any transaction with such parties. Please contact each third party provider directly if you have any questions about their privacy policies or the information they require for you to complete any transaction.


UML collects certain information from and about its customers and users, subject to the provisions as outlined in Section 2 above, in the following ways which include but are not limited to: directly from our web server logs and from cookies. also collects information volunteered by you in several areas, including loan applications, mortgage information requests, account pages, logins, site registrations, and surveys. Certain information we request for you to participate in certain features within the website(s) may include but not be limited to personally identifiable information such as name, address, telephone and fax numbers, email address, and billing information. We will at all times inform you at the time we collect information, whether the information requested, is necessary for you to participate in a particular feature or access a particular product on the website(s).

We will not disclose personally identifiable information we collect from you to third parties without your permission except to the extent necessary including but not limited to, the following:

To fulfill your service requests for loan processing, services or funding authorizations

To respond to legal process including a court order or comply with federal, state or local law

In connection with a merger, acquisition, or liquidation of UML or its affiliates and business divisions

The information collected may also be used to respond to specific requests by you including sending you periodic information and special offers from UML or its affiliates and our sponsors and/or advertisers, to provide you with updates on offerings and features, to provide you with product information from affiliates in database, to provide notice of changes to Terms of Use and Privacy Statement. The information provided by you may also be used to better understand customers’ interests and usage behavior, and maybe collected and/or combined with information from affiliates of UML online or offline sources.

We may also supply the information you provide, on a strictly confidential basis, to service providers, such as title companies, appraisers, credit reporting services, etc., who assist us in qualifying, processing, closing and servicing your loan.

Credit Report Data: By submitting a loan application or a request to be pre-qualified to us, you authorize us to share your credit report with our affiliates only to process your loan application.

Newsletter Request: We may provide you with the opportunity to subscribe to E-newsletters and other Email based communications. You may unsubscribe by following the instructions provided in each Email newsletter. UML follows all CAN-SPAM Act 2003 regulations.

  • Use of Cookies, Web Server Logs and other electronic information collection mechanisms.

When you visit our Website (s), we may track information to administer the Site and analyze its usage. Examples of information we may track include:

  • Your computer’s Internet protocol address or I.P. address.
  • The kind of web browser or the computer you use.
  • Number and type of links you click within the Site.
  • Locality including the state or country from which you accessed the Site.
  • Date and time of your visit(s).
  • Name of your Internet service provider.
  • Pages you viewed on the Site.

I.P. addresses are collected for system administration purposes and for use in studying how people use our Site (s) and how UML can improve the use of the Site. UML may use cookies to personalize or enhance your user experience. A cookie is a small text file that is placed on your hard disk by a Web page server. Cookies cannot be used to run programs or deliver viruses to your computer. Cookies are uniquely assigned to you, and can only be read by a Web Server in the domain that issued the cookie to you.

One of the primary purposes of cookies is to provide a convenience feature to save you time. For example, if you personalize a web page or account or navigate within the Site, a cookie helps the site to recall your specific information on subsequent visits. Hence, this simplifies the process of delivering relevant content and eases site navigation by providing and saving your preferences and login information as well as providing personalized functionality.

UML may use cookies to identify customers and to automatically give them access to previously stored information. UML may also use cookies to estimate our audience size and usage patterns and to track the aggregate number of customer returns at our web site(s). UML may also use cookies to simplify certain processes on the Website (s), including but not limited to the filing out of certain forms.

You have the ability to accept or decline cookies by changing certain settings of your web browser. If you reject cookies by changing your browser settings, then be aware that this may disable some of the functionality on our Website.

You agree to receive automated educational/promotional/informational messages. This agreement is not a condition of purchase. Receive up to 8 messages per month. Reply STOP to opt-out or HELP for help. Message & data rates apply. 

Unlimited Mortgage Lending, LLC, respects your rights to privacy. We treat you the way we want to be treated. Please be advised that we have strict rules that forbid us from providing any of your information to any third party. We are governed by Regulation P, which states that no NON-PUBLIC information is to be provided to any persons/entities that are NOT involved in procuring a mortgage on your behalf.


The information that you provide to Unlimited Mortgage Lending, LLC either via the website, email, phone, SMS, and or any other digital means will not be shared.


As a standard practice, we do not provide any of your information to anybody who is not engaged by Unlimited Mortgage Lending, LLC in securing a residential loan on your behalf. We do not sell any information to any third parties. Unlimited Mortgage Lending, LLC has no affiliates and is a privately held company. For more information about our privacy policy please Go to