Closing costs are the fees paid at the end of a real estate transaction — separate from your down payment and the home price. Buyers typically pay 2-5% of the purchase price in closing costs.

The major buckets

  1. Lender fees (~1-1.5% of loan)
  2. - Loan origination fee
  3. - Underwriting fee
  4. - Appraisal (~$500-800)
  5. - Credit report
  1. Title and escrow (~0.5-1% of price)
  2. - Title insurance (lender's policy required, owner's policy optional but recommended)
  3. - Escrow / settlement agent fee
  4. - Recording fees
  1. Prepaid items
  2. - Property tax escrow (2-6 months)
  3. - Homeowners insurance (12 months)
  4. - Mortgage interest (partial month)
  1. Inspection costs (~$300-700)
  2. - Home inspection
  3. - Pest inspection (in some states)
  4. - Specialty inspections (roof, sewer, etc.)

State and city variations

Closing costs vary significantly by state. New York and California have higher transfer taxes; Texas and Florida have lower. Our state policy table tracks these variations — when you submit an offer, you'll see an estimated closing cost range based on your specific state and price.

How rebates affect your closing

In states where commission rebates are allowed, your buyer agent may credit a portion of their commission back to you at closing. This typically appears on your Closing Disclosure as a "credit from buyer's agent" and reduces your net cash to close.

In banned states (or restricted-disclosure states without proper paperwork), this is not available — and our system blocks it automatically.

RESPA compliance

If you're using a mortgage, the Real Estate Settlement Procedures Act (RESPA) Section 8 prohibits kickbacks between agents and lenders. Our rebate calculator requires explicit lender consent before any rebate is processed when a mortgage is involved.