What Can you Expect to Pay in Closing Costs?

What can you expect to pay in closing costs? That number depends on your lender and which loan program you qualify for.

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How much can you expect to pay in closing costs when purchasing a home?

Whenever my clients ask me to estimate the closing costs of their home purchase, I typically tell them that it depends on their lender. When you purchase a home, most of your closing costs come from the expenses associated with obtaining your mortgage. 

Adam Colberg of Fairway Independent Mortgage gets this question a lot too, and his answer is more or less the same—it depends. There are many different loan programs and lenders out there, and costs can vary from lender to lender. Without knowing which loan program you qualify for, your exact closing costs will differentiate.

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There are many different loan programs and lenders out there, and costs can vary from lender to lender.

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When buying a home, it’s important to remember that there are three different things you need to set money aside for:

1. The down payment
2. Your third-party fees (i.e. lender and title fees)
3. The prepay fee, or the money that will be set into an escrow account to pay your taxes and insurance when they’re due

With most lenders, you have the option to waive your escrows, or pay your taxes and insurance on your own. The escrow account is basically a forced-savings account because it’s money you set aside to pay your taxes and insurance. Some people prefer not having to write that check at the end of the year because property taxes are high in the DFW area. 

If you have any questions for Adam, you can give him a call at (972) 984-8662. If you have any questions for me, don’t hesitate to give me a call or shoot me an email. I’d be happy to help you.