Educational Guide
Understanding Closing Costs
Closing costs are the fees paid to finalize your mortgage and purchase. They're separate from your down payment and usually run 2–5% of the loan amount.
What's typically included
- Loan origination and underwriting fees
- Appraisal and home inspection
- Title search, title insurance, and escrow fees
- Prepaid property taxes and homeowners insurance
- Recording fees and transfer taxes (vary by location)
Ways to reduce them
You can compare Loan Estimates from multiple lenders, negotiate seller concessions, ask about lender credits (in exchange for a slightly higher rate), and look into closing-cost assistance programs.
The Loan Estimate & Closing Disclosure
By law, lenders must give you a standardized Loan Estimate within three business days of application and a Closing Disclosure at least three days before closing. Compare them carefully.
Remember: HomeWise is an educational resource, not a lender. Always confirm current figures and terms with a licensed mortgage professional.
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