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What Are Closing Costs and How Much Will They Be?

💸 What Are Closing Costs and How Much Will They Be?Most buyers focus on the down payment—but closing costs are an important part of your budget too. 📑 What Are Closing Costs?

Closing costs are the fees and expenses required to finalize your home purchase. They typically add up to 2%–5% of the purchase price, depending on your loan, location, and negotiations.


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They’re due at the end of the escrow process—right before you receive the keys.

📊 What’s Included in Closing Costs?

Here’s what you might see on your closing statement:

Lender Fees

  • Loan origination or underwriting

  • Appraisal fee

  • Credit report fee

  • Points paid (if buying down your rate)

Title & Escrow Fees

  • Escrow service fee

  • Title insurance (lender + optional owner’s policy)

  • Notary/signing services

Government Fees

  • Recording fees (county)

  • Transfer taxes (in some areas)

Prepaid Items

  • Homeowners insurance (1 year)

  • Prepaid interest

  • Property taxes (prorated)

  • HOA fees (if applicable)

💰 How Much Will I Pay?

On a $600,000 home, typical closing costs could range from:

| 2% = $12,000 | 3% = $18,000 | 4% = $24,000 | 5% = $30,000 |

💡 Some of these costs can be negotiated with the seller, or covered through closing cost assistance or lender credit programs.

🤝 Can I Roll Them Into the Loan?


In some cases, yes. Certain loans allow you to finance some closing costs—or get a seller credit to reduce them. I can help you structure your offer to account for this when it makes sense.

🎯 You Don’t Need to Memorize This

Part of my job is walking you through your cost estimates before you ever make an offer—so there are no surprises later. Planning ahead makes your purchase smoother and more confident.

—

Andrew Georgitsis DRE#02266192 📧 info@socalrealtyandinvestments.com 📞 866-322-5487

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