RE/MAX Real Estate Center
Debra Parker, RE/MAX Real Estate CenterPhone: (508) 269-3674
Email: [email protected]

Average closing costs for buyer hopefuls: What to expect

by Debra Parker 11/01/2023

Budgeting for buying a home can seem daunting, but one of the best ways to make it easier is to figure out the average closing costs for buyer hopefuls. There are various service charges bundled together to make up closing costs, and some can vary significantly based on location and specific property.

Here are some of the most common closing costs you can prepare for:

Loan origination fee

Mortgage lenders charge an origination fee for creating the loan. This closing cost varies from one mortgage provider to another, but usually ends up being equal to about 1% of the total amount of the loan. While this is considered a closing cost, some lenders require this fee up front for the loan estimate.

Home inspection fee

Home inspection fees typically cost a few hundred dollars. They cover the optional – but important – official property inspection by a licensed professional before closing.

While technically not always required by lenders or buyers, home inspections can help you identify major issues or repair needs before buying a home.

Appraisal fees

Appraisal fees are paid to the professional home appraiser to determine the value of the property. These fees often range from $300 to $400, though the cost can vary depending on location and the size of the home.

Title search

Before a buyer can take over the title for the new home, it has to be examined carefully for any evidence of prior issues. Examples of issues a title search looks for include liens, unpaid property taxes or unfulfilled contingencies. Typically, the fee for a title search will cost around $400 to $500.

These are not all the possible closing costs associated with buying a home. However, they are some of the most common, and the easiest, to budget for. Remember these fees when planning a budget to include average closing costs.

About the Author
Author

Debra Parker

Creating long-term relationships and earning the trust of clients, is the focus of my approach. Through hard work, market knowledge, honesty and strategic problem solving, I strive to put clients at ease and make the real estate experience enjoyable and memorable.

As a consistently ranked top agent, I am committed to my clients receiving the best service. Since 1989, I have been a member of the National Association of Realtors and the Massachusetts Association of Realtors. With my dedicated experience in the area, I can guide you through the process of buying or selling.