Closing costs and fees are charged by your mortgage lender or other financing party for their services. Whether you’re a first-time buyer or not, these are a vital factor to consider when setting aside funds for a house.

You can expect to pay 2-4% of the cost of the house in closing fees. For instance, a 150,000 house warrants about $6,000 at closing. While buyers don’t know always know what to expect, we hope this list will help you prepare!

Mortgage application or loan origination fees:

this is for the completion of the loan process. It starts when you submit your request and financial information to a lender, bank, credit union, or other institution.

Inspection fee:

just to clarify, an inspection is not always required in the sale of a house, but mortgage lenders strongly encourage it. This helps protect both parties in discovering the real condition of a property.

Appraisal fee:

assessing the value of the property in a handy report. Since lenders are not quite real estate experts, knowing the market value gives them more confidence in lending you money.

Home warranty:

the cost of the insurance policy to cover your home in the event of unexpected events. This is just in case there’s issues with appliances, electrical systems, plumbing systems, heating and cooling systems, and more.

Property taxes:

Taxes are paid twice per year. At closing, the buyer will officially become responsible for taxes. They will also reimburse the seller for taxes they’re already paid for that year.


The percentage of a loan, where one point equals one percent. Points are used to buy down your lender’s interest rate. How many points you pay depend on how much you have at closing and how long you’re planning on living in the new house.


Keep in mind this is not an all-inclusive list, and the amounts will vary from fee to fee depending on where you live. To truly get an overall view of what you’ll be paying at closing, contact your lender and ask for a detailed list.