A visual companion to the closing costs handout - scroll to see the full breakdown, or save/print as an image.

Buyer education

Closing costs,
in four categories.

Beyond the down payment, buyers bring funds for closing costs - a bundle of one-time fees and prepaid items. Here are the four categories, who typically covers each one, and when each piece comes due.

What's in the bundle

Lender & loan fees

Origination, credit report, appraisal, and flood certification - the cost of underwriting and verifying your loan.

Typically paid by the buyer Disclosed on LE + CD

Title & settlement

Title search, lender and owner title insurance, and the settlement fee - confirming the seller can legally convey clear title.

Split between buyer and seller Disclosed on LE + CD

Taxes & recording

Recordation and transfer taxes plus recording fees - making the sale and your loan a matter of public record.

Varies by state and contract Disclosed on LE + CD

Prepaids & escrow

First-year insurance, interim interest, and the tax and insurance escrow cushion - the reserve your servicer draws from later.

Typically paid by the buyer Disclosed on LE + CD
When it's disclosed
1

Application

You apply for your loan - the closing cost clock starts here.

2

Loan Estimate

Your first itemized look at costs, within 3 business days of application.

3

Closing Disclosure

The final, locked-in version, at least 3 business days before closing.

Who pays what

Every closing cost lands on one of two sides of the table - knowing which side is what lets you negotiate credits intelligently.

Typically the buyer

Loan fees
Origination, appraisal, credit report
Title & closing
Lender's title insurance, settlement fee
Recording
Deed and deed of trust fees
Prepaids
Interim interest, first-year insurance
Escrow
Tax and insurance deposit

Typically the seller

Commissions
Per the listing agreement
Transfer taxes
Varies by state and contract
Prorated taxes
Owed up to the closing date
Payoff
Existing loan and lien releases
Credits
Negotiated toward buyer costs

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Equal Housing Opportunity. {{lo.company}}, NMLS #{{lo.nmls}} (Company NMLS #{{compliance.companyNmls}}). This material is educational only and is not a commitment to lend, an offer of credit, or a fee quote; all loans are subject to underwriting approval. Costs described are general categories - actual items and amounts vary by transaction, loan program, and state, and appear on your official Loan Estimate and Closing Disclosure. This co-marketed material is shared by each party at its fair-market-value cost consistent with RESPA Section 8; no party pays for referrals and none are required.