Closing costs explained — what the buyer typically pays

Lender fees — the loan-related items

Origination fee: lender's fee for processing the loan. Typically 0.5-1% of loan amount. Sometimes called 'discount points' if used to buy down the rate.

Underwriting fee: $500-$1,500 flat. Sometimes bundled with origination.

Application fee, processing fee, document prep: $100-$500 each, often consolidated.

Lender fees are the most-negotiable category. Always shop 3+ lenders and compare Loan Estimates side-by-side.

Third-party services — the non-negotiable ones

Appraisal: $500-$800. Required by lender. You pay even if the loan falls through.

Credit report: $30-$75.

Title search and title insurance (lender's policy): $1,000-$2,500. The owner's title policy ($500-$2,000) is optional but recommended.

Survey: $300-$700, sometimes only required by lender or if title insurer flags property line ambiguity.

Inspection: $300-$600. Optional but always recommended. NOT a closing cost technically, paid before close.

Recording fees and transfer taxes: state and county-specific, $200 to several thousand depending on jurisdiction.

Prepaids and escrow — items the lender holds

Property tax escrow: 2-6 months of property tax pre-funded into the lender's escrow account.

Homeowners insurance: 12 months prepaid + 2 months of escrow.

Mortgage interest: prorated from closing day to end of month.

PMI (if applicable): 1-2 months prepaid.

These aren't 'fees' — they're future expenses you're funding upfront. They feel like costs but you'd pay them anyway.

Who pays what — the negotiable items

Most closing costs are buyer-side, but seller concessions can shift fees. Conventional loans allow up to 3% seller credit; FHA up to 6%; VA up to 4%. In a buyer's market, sellers often credit 1-3% of price toward buyer closing costs.

Always negotiate this in the offer. Sellers usually prefer giving a closing credit over reducing the price (better optics for the comp).

What zipradar shows

Closing costs vary widely by state — transfer taxes alone range from $0 (Oregon) to ~$15/k of price (NY metro). We don't model your specific closing-cost estimate (your lender's Loan Estimate is canonical).

Pair /topic/property-tax/[zip]/ with /learn/property-tax-millage-explained/ for the post-close monthly tax that follows you forever.