Quick answer: Closing costs commonly include lender charges, appraisal, title and escrow services, recording fees, prepaid property taxes and insurance, initial escrow deposits, and any discount points. The total depends on the loan, property, location, closing date, and selected rate.
Three useful cost categories
Lender-controlled charges may include underwriting, processing, origination charges, discount points, or lender credits. These are important when comparing mortgage offers.
Third-party charges may include appraisal, credit report, title search, title insurance, settlement, escrow, recording, flood certification, and other property-related services.
Prepaid and escrow items may include homeowners insurance, prepaid interest, property taxes, and the initial funding of an escrow account. These amounts can change with the closing date and are not necessarily lender profit.
How should Loan Estimates be compared?
Compare estimates using the same loan amount, program, rate, lock period, occupancy, property type, and down payment. Separate lender pricing from taxes, insurance, and services that may be similar regardless of the lender. A lower advertised rate may require more points, while a higher rate may provide a lender credit.
Can closing costs be reduced?
Depending on the transaction and program, costs may be paid with personal funds, eligible gift funds, seller credits, assistance programs, or lender credits. Each method has tradeoffs, so compare both the upfront amount and the long-term payment.
Read the detailed Idaho and Oregon closing-cost guide and compare rates, points, and credits.
The Loan Estimate and Closing Disclosure provide the transaction-specific figures. Estimates can change when verified information or loan terms change.