How much do I need for closing costs?

Closing costs are typically 2–5% of the loan amount, though the total depends on the lender, loan type, and location. They include lender fees, third-party services (e.g. appraisal, title), and prepaid items.

The Loan Estimate shows an itemized list and total closing costs. Lender credits can reduce what you pay out of pocket; discount points or other fees can increase it. Cash to close combines closing costs with down payment and other amounts.

To know how much you’ll need, get quotes from multiple lenders and compare. One lender might have lower fees or more lender credits than another for a similar rate.

Use a comparison tool to enter each quote’s closing costs and cash to close. That way you can see the range of what you might need at settlement.