Reviewed September 2026.
Before you write an offer, budget more than the down payment. Buyer closing costs on a purchase often land in a rough 2%–5% of purchase price range for many conventional scenarios, with wide variance by state, title fees, points, and prepaid taxes/insurance. Use that band for planning, then replace it with a real Loan Estimate (LE) from lenders you shop. This is a napkin estimate guide, not a fee quote. Decode the final numbers on the Closing Disclosure.
Rough percent ranges (planning only)
| Purchase price | 2% sketch | 3.5% sketch | 5% sketch |
|---|---|---|---|
| $300,000 | $6,000 | $10,500 | $15,000 |
| $400,000 | $8,000 | $14,000 | $20,000 |
| $500,000 | $10,000 | $17,500 | $25,000 |
Some markets and loan structures land outside this band. Seller credits, lender credits, and discount points can move cash-to-close a lot. Points math: How to compare mortgage points. Origination fee literacy: Understanding loan origination fees.
What usually sits inside “closing costs”
Common buyer-side buckets (names vary by LE section):
- Lender fees: origination, underwriting, processing, application (some are zeroed by marketing; read the LE).
- Third-party fees: appraisal, credit report, flood cert, courier.
- Title and settlement: owner’s vs lender’s title policy norms vary by state; ask who customarily pays.
- Prepaid items: months of homeowners insurance, prepaid interest, tax reserves.
- Escrow / impound deposits: initial cushion for tax and insurance bills (How escrow works for homeowners).
- Discount points (optional): prepaid interest to lower the note rate.
Down payment is separate from these fees even though both hit cash-to-close. Savings plan: Saving for a home down payment.
Replace the napkin with Loan Estimates
- Soft-shop or schedule applications inside a short rate-shopping window when you are ready for hard pulls (see hard-inquiry guides when shopping multiple lenders).
- Ask each lender for a Loan Estimate on the same purchase price, down payment, and lock assumptions.
- Compare APR, lender fees, and credits, not only the headline rate (APR vs interest rate).
- Add a $1,000–$3,000 personal buffer for moving, immediate repairs, and LE-to-CD drift you did not expect.
Seller concessions can cover part of allowable closing costs under loan-program limits. Do not write an offer that only works if a perfect credit appears; keep a cash backup.
Offer-stage checklist
- Pick a planning percent (start at 3%–4% if you need one number) and multiply by your max price.
- Add that figure to down payment and moving costs before you tour at the top of the range.
- Get at least 2–3 Loan Estimates before you treat any fee sheet as final.
- Re-check cash-to-close when the appraisal, tax proration, or insurance quote changes.
- Three business days before signing, compare the Closing Disclosure to the last LE line by line.
Educational only. Not a Loan Estimate, fee quote, or personalized mortgage advice. Actual closing costs vary by property, state, lender, and contract credits.