What Are Typical Closing Costs on a Mortgage?

The typical closing costs on a mortgage will include several different fees. Costs typically include things such as the credit reporting fee, the appraisal fee, the loan application and/or origination fee, title search and insurance fees, legal fees associated with the home purchase (for states that require an attorney), inspections, transfer fees, escrow fees and points. 

If you are worried about what the closing costs on your loan will be, ask for a good faith estimate, or a Truth in Lending document from your lender to get a good idea of what to expect. You will pay some costs, such as the appraisal and credit reporting fee, as you go through the loan process. This means these will not be due at closing. If you want to get an idea of what closing costs on a mortgage will be before you actually apply for one, it is best to estimate anywhere from 3 to 6 percent of the total purchase price of the home. For example, if a home costs $100,000, the closing costs could be anywhere from $3,000 to $6,000, depending on the state the property is located in.

blog comments powered by Disqus