Closing costs are the fees and charges due when your home purchase or refinance is finalized. They're separate from your down payment, and planning for them early avoids surprises.
What do closing costs include?
Typical items include lender fees, the appraisal, title and escrow services, recording fees, and prepaid items such as property taxes and homeowners insurance.
How much are closing costs?
The total depends on your loan, the property and your location. After you apply, you'll receive a Loan Estimate that itemizes your expected costs, followed by a Closing Disclosure before you sign.
Who pays closing costs — buyer or seller?
Buyers typically pay most loan-related costs, while sellers cover their own fees such as agent commissions. In some transactions, buyers can negotiate for the seller to contribute toward their closing costs.
Can closing costs be reduced?
Sometimes. Options can include seller concessions, lender credits, or California assistance programs that help with closing costs. Each comes with trade-offs worth discussing.
General educational information only. Not financial advice or a commitment to lend.