Know What You'll PayBefore You Close
The purchase price isn't the whole picture. Closing costs add 2-5% to your bottom line.
What Are Closing Costs?
Closing costs are the fees and expenses you pay to finalize your home purchase—separate from your down payment. Think of them as the administrative, legal, and service fees required to transfer ownership and set up your mortgage.
2% to 5% of Loan
On a $300,000 loan, expect to pay $6,000 to $15,000 in closing costs. Smaller loans often pay a higher percentage due to fixed fees.
3 Business Days
Federal law requires your lender to provide your Closing Disclosure at least 3 business days before closing—giving you time to review.
Some Are Negotiable
Origination fees, title services, and seller concessions can often be negotiated—potentially saving you thousands.
Don't Confuse Closing Costs with Prepaids
About 50% of what you pay at closing are actually "prepaids"—advance payments for property taxes, homeowners insurance, and escrow. These aren't true closing costs; they're regular expenses you'd pay anyway, just funded upfront.
Breaking Down Your Closing Costs
Hover over each category to see what's included. The largest components are typically title insurance, origination fees, and transfer taxes.
Origination Fees
Fees charged by your lender for processing and underwriting your loan application.
Origination Fees Include:
- Application fee
- Processing fee
- Underwriting fee
- Discount points (optional)
Title & Settlement
Fees for ensuring clear property ownership and handling the closing transaction.
Title & Settlement Include:
- Title search
- Title insurance (lender)
- Title insurance (owner - optional)
- Settlement fee
Government Fees
Taxes and fees charged by federal, state, and local governments.
Government Fees Include:
- Recording fees
- Transfer taxes
- Intangible/mortgage taxes (varies by state)
Third-Party Services
Services from independent companies required to complete your transaction.
Third-Party Services Include:
- Appraisal fee
- Credit report fee
- Home inspection
- Survey
Prepaid Expenses
Future expenses paid upfront at closing to establish your escrow account.
Prepaid Expenses Include:
- Homeowners insurance (1 year)
- Property taxes (2-6 months)
- Prepaid interest
- PMI/MIP (if applicable)
Cost data from Urban Institute research on closing cost components.
Your Closing DisclosurePage by Page
The Closing Disclosure is a 5-page form required by federal law. Here's what to look for on each page.
Loan Terms
Verify all terms match your Loan Estimate and what you agreed to.
Closing Costs
Compare costs to your Loan Estimate. Some fees can increase, others cannot.
Cash to Close
This is the exact amount you need to bring to closing.
Additional Information
Understand your obligations and what happens if you miss a payment.
Loan Calculations
See the true cost of your loan over its entire term.
Need Help Reviewing?
The CFPB offers an interactive tool that explains every section of your Closing Disclosure.
CFPB Explainer ToolClosing Costs Vary by State
Transfer taxes, recording fees, and local customs can significantly impact your closing costs. Here's what to expect in Arizona.
Arizona
Arizona has no state transfer tax, making it more affordable for buyers. Recording fees are flat ($30 statewide under ARS 11-475).
Data from Bankrate and state government sources. Actual costs may vary.
Watch &Understand
Educational videos from government agencies and non-profit organizations—not lender advertisements.
Closing Disclosure All Pages Explained
Comprehensive walkthrough of the Closing Disclosure form, explaining the transition from old disclosure forms to the new integrated disclosure.
Video Playlist
4 educational videos
All videos from official government and non-profit sources
Frequently Asked Questions
Everything you need to know about closing costs and your Closing Disclosure.
Ready to Get Pre-Approved?
Get your personalized Loan Estimate and see exactly what your closing costs will be—no surprises, just transparency.
Related Resources
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