Costs & Fees
What are closing costs when buying a house?
The short answer
Closing costs are the one-time fees you pay to finalize a mortgage and transfer of a home — typically covering lender charges, third-party services (appraisal, title, recording), and prepaid items like taxes and insurance. They are itemized on your Loan Estimate up front and your Closing Disclosure before signing, and commonly run to a few thousand dollars on top of your down payment.
Key points
- They are separate from your down payment.
- Every fee must appear on your Loan Estimate (page 2) and Closing Disclosure.
- Some fees are fixed by third parties; others are set by the lender and can vary.
- You can compare closing costs across lenders using the same figures.
What is included
Closing costs bundle three kinds of charges: fees the lender charges to make the loan (origination, underwriting, points), fees for required third-party services (appraisal, credit report, title search and insurance, government recording), and prepaid or escrow items (homeowners insurance, property taxes, and per-diem interest).
The federal TRID rule requires lenders to give you a standardized Loan Estimate within three business days of your application, so you can compare offers line by line before committing.
How much they run
Total closing costs vary by state, loan size, and lender. CandidCost publishes the actual distribution of total loan costs by state and loan band, computed from the row-level CFPB HMDA data, so you can see where a quote falls rather than relying on a rule of thumb.
Common questions
- Can closing costs be rolled into the loan?
- Sometimes. Certain costs can be financed or offset with lender credits (in exchange for a higher rate), but this increases what you pay over time. The trade-off is shown on your Loan Estimate.
- Are closing costs negotiable?
- Lender-controlled fees (origination, application, underwriting) can vary between lenders and are worth comparing. Third-party and government fees are generally fixed.
Put this to work
Sources
Every claim above traces to a public government source.
- ViewT1What is a Loan Estimate? (Regulation Z / TRID)
Consumer Financial Protection Bureau · Government / primary · 2024
- ViewT1Understand closing costs and the Closing Disclosure
Consumer Financial Protection Bureau · Government / primary · 2024
- ViewT1HMDA public Loan/Application Register (2025 Modified LAR)
Consumer Financial Protection Bureau · Government / primary · 2025