Know What You Owe

Closing Costs Guide
for First-Time Buyers

Closing costs typically run 2–5% of the purchase price — a $350,000 home can mean $7,000–$17,500 in costs beyond your down payment. Here's exactly what you'll pay and what you can negotiate.

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Quick Closing Cost Estimate

$250,000 home
$5,000–$12,500
2–5% of price
$350,000 home
$7,000–$17,500
2–5% of price
$500,000 home
$10,000–$25,000
2–5% of price

These are estimates. Transfer taxes vary significantly by state — check your state's buyer guide for an accurate number.

Complete Closing Cost Breakdown

Lender Fees

Origination fee
0–1% of loan
Some lenders charge no origination fee (LendingTree lets you compare).
Discount points
0–2% of loan
Optional — you pay upfront to buy down your interest rate. Usually worth it if you plan to stay 5+ years.
Application fee
$0–$500
Many lenders waive this — don't pay if you don't have to.
Credit report fee
$25–$50
Lender's cost to pull your credit.

Third-Party Fees

Appraisal
$400–$700
Required by your lender to confirm the home is worth the purchase price.
Home inspection
$300–$600
Not technically a closing cost but paid during escrow. Never skip it.
Title search
$150–$400
Review of public records to confirm clear title.
Owner's title insurance
0.5–1% of purchase price
Protects you from future title claims. One-time premium paid at closing. Strongly recommended.
Lender's title insurance
0.3–0.5% of loan
Protects your lender — required if you have a mortgage.
Survey
$400–$700
Some lenders require it. Always recommended for FSBO properties.
Attorney fee
$500–$1,500
Required in attorney-closing states. Worth hiring in all FSBO deals.

Prepaid Items & Escrows

Homeowners insurance (prepaid)
12 months upfront
Your first year of insurance, paid at closing.
Mortgage interest (prepaid)
15–30 days
Interest from closing date to end of month.
Property tax escrow
2–6 months
Initial escrow setup — your lender holds this to pay taxes on your behalf.
HOA reserves
2–3 months
If applicable — initial deposit into HOA escrow.

Government/Recording Fees

Transfer taxes
0–2%+ of price
Varies dramatically by state — Texas has none, PA is 2%. See our state guides.
Recording fees
$50–$200
County clerk fee to record the deed and mortgage.
High Value — $240/funded loan

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How to Reduce Your Closing Costs

Shop multiple lenders

Lender fees (origination, application, points) vary significantly. LendingTree lets you compare Loan Estimates from multiple lenders on the same day.

Ask for seller concessions

In FSBO deals, you can negotiate closing cost credits directly with the seller. A $5,000 closing cost credit is common — ask for it in the offer.

Use a no-closing-cost loan

Some lenders offer no-closing-cost mortgages — they roll the fees into a slightly higher rate. Good if you plan to sell or refinance within 5 years.

Close at end of the month

Reduces prepaid interest from 30 days down to just a few days — can save hundreds.

Apply for state DPA programs

Many state HFA programs cover closing costs as part of their assistance. See our First-Time Buyer Programs guide.

Negotiate the transfer tax split

In states where transfer tax is negotiable between buyer and seller, ask the seller to cover their half (or all of it) as a concession.

Loan Estimate vs Closing Disclosure: Your lender must provide a Loan Estimate (LE) within 3 business days of your application showing estimated closing costs. You'll receive the final Closing Disclosure (CD) 3 business days before closing — compare it line-by-line to the LE and question any changes.
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