Understanding closing costs before you buy

Closing costs typically add 2–5% to the purchase price. Knowing what’s included helps you plan — and spot fees you can negotiate.

What’s usually included

Lender fees, appraisal, title search and insurance, inspections, recording fees and prepaid property taxes or insurance. Your lender will give you an estimate early in the process.

What you can negotiate

Some lender fees, the inspection provider and, in a slower market, a seller credit toward your costs. Ask for an itemized breakdown and question anything unclear.

How to prepare

Keep closing costs separate from your down payment in your budget, and leave a small buffer for moving and first-month expenses. Note: this guide is general information — always confirm figures with your lender and a qualified professional.