Closing costs are the various fees and expenses you’ll need to pay before finalizing your home purchase, typically ranging from 2-5% of your loan amount. This checklist breaks down all potential costs you might encounter, helping you prepare financially for your closing day.
A comprehensive breakdown of typical closing costs when buying a home in the USA. Costs typically range from 2-5% of the loan amount.
=> Download the PDF Checklist (Printable)
1. Lender Fees
a. Origination Charges
- Loan origination fee (0.5-1% of loan amount)
- Application fee ($300-500)
- Processing fee ($300-900)
- Underwriting fee ($300-900)
- Rate lock fee ($100-500)
b. Points
- Discount points (optional, 1 point = 1% of loan)
- Mortgage points for rate reduction
- Negative points (credits from lender)
2. Third-Party Fees
a. Property-Related
- Home appraisal ($300-700)
- Home inspection ($300-500)
- Pest inspection ($100-200)
- Survey fee ($350-500)
- Flood certification ($15-25)
b. Title-Related
- Title search ($200-400)
- Title insurance – lender’s policy (varies by loan amount)
- Title insurance – owner’s policy (optional)
- Title company fees
- Settlement/closing fee ($500-1,000)
3. Government Fees
a. Recording Charges
- Deed recording fee ($125-250)
- Mortgage recording fee ($125-250)
- State recording tax (varies by state)
- Local recording tax (if applicable)
b. Transfer Taxes
- State transfer tax (varies by state)
- County transfer tax (varies by location)
- City transfer tax (if applicable)
- Documentary stamps (in some states)
4. Prepaid Items
a. Insurance
- Homeowners insurance (first year)
- Flood insurance if required (first year)
- Private Mortgage Insurance upfront fee if applicable
- PMI first month’s premium
b. Property Taxes
- Property tax reserves (2-6 months)
- Tax service fee ($50-100)
- First year’s taxes (prorated)
c. Interest
- Prepaid interest (from closing to month end)
- First month’s interest
- Per diem interest charges
5. Escrow Account Setup
a. Initial Deposits
- Property tax cushion (2-3 months)
- Insurance cushion (2-3 months)
- PMI cushion if applicable
- HOA dues if applicable
b. Reserves
- Tax reserves
- Insurance reserves
- PMI reserves
- HOA reserves
6. Additional Costs
a. HOA/Condo Related
- HOA transfer fee
- HOA document fee
- Condo questionnaire fee
- HOA certification fee
b. Miscellaneous
- Wire transfer fee ($25-50)
- Courier fee ($30-75)
- Notary fee ($100-200)
- Document preparation ($200-400)
7. Optional Costs
a. Additional Services
- Home warranty ($300-600)
- Additional inspections
- Radon testing
- Lead paint inspection
- Well/septic inspection
b. Legal Fees
- Attorney review (if required by state)
- Document review
- Title review
- Contract negotiation
8. Post-Closing Costs
a. Move-In Related
- Moving expenses
- Utility deposits
- Initial repairs/updates
- New locks/security system
b. Documentation
- Additional copies of closing docs
- Recording verification
- Tax payment verification
- Insurance verification
Note: Actual costs vary by location, lender, and transaction type. Some fees are negotiable, and some may be paid by the seller depending on your purchase agreement. Always review your Loan Estimate and Closing Disclosure carefully.
=> Download the PDF Checklist (Printable)
