Average closing costs for buyer hopefuls: What to expect

by Mike Flannagan 08/14/2022

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

Mike Flannagan

Mike Flannagan, Principal Broker @FlannaganAssociates. Mr. Flannagan began his real estate career in 1991, Mike’s educational and professional experiences have provided a strong foundation in his real estate career. Such a background has been exceptionally useful in understanding, managing, problem-solving, and ultimately closing complex transactions. These talents, however, do not preclude equal success in navigating more traditional transactions, where Mike’s naturally strong work-ethic and contagiously kind personality complete the full circle of his effectiveness as a true and pleasant partner in the purchase and sale of a full range of real estate assets. Mike is also a Master Real Estate Developer and has worked on various communities right here in Loudoun County. Additionally, he also build’s luxury custom homes through his entity Virginia One Development priced from $3-million and up. Mike has passed $1 Billion in total life time achievement in transactions.