Mortgage Closing Costs Explained: What Buyers Should Budget For
Closing costs are the upfront expenses required to complete a home purchase and originate the mortgage. They are separate from the down payment, although both may be due around the same closing date. A good budget treats them as a distinct cash requirement. What closing costs can include Depending on the transaction, costs may include lender origination charges, appraisal, credit report, title services, settlement or attorney fees, recording fees, government charges, prepaid interest, and initial escrow deposits for taxes and insurance. The exact list varies by location, lender, property, and loan program. The Consumer Financial Protection Bureau’s Loan Estimate explainer describes how lenders present estimated loan and settlement costs. Use the official documents for a purchase rather than treating an online percentage as a quote. Cash to close is a broader number Cash to close may include the down payment, closing costs, credits, deposits already paid, and adjustments between the bu...