Buying a Home? Don't Be Surprised By Closing Costs!

mortgage closing costs


You’re almost there! You’ve been saving so long for a down payment on a new house and even set a budget for your monthly mortgage payment. But there’s one more thing you’ll need to consider: closing costs.

Surprisingly, many home buyers get caught off guard by closing costs, which can certainly be an unpleasant surprise if you’re unaware.

According to a 2021 survey of 3,000 adults, 44% said they weren’t aware of all the costs associated with buying a home.

What Are Closing Costs and What Do They Cover?

Closing costs encompass a variety of expenses above your property’s purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments, and homeowners’ insurance.

In short, closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction. They cover things like:

  • Government recording costs
  • Appraisal fees
  • Credit report fees
  • Lender origination fees
  • Title services
  • Tax service fees
  • Survey fees
  • Attorney fees
  • Underwriting Fees & Processing Fees
  • Escrow
  • Home inspection
  • Property tax
  • Private Mortgage Insurance (PMI)

 Be sure to ask your EHL Loan Officer for a detailed list.

How Much Should You Budget for Closing Costs?

Closing costs are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.


  • You’ve found a home for $500,000.
  • Your closing costs (based on the 2%-5% Freddie Mac estimate) could be between $10,000 and $25,000.

Keep in mind that if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.

How Can You Best Prepare Yourself for Closing Day?

When starting the mortgage process, it’s important to understand all costs involved from the down payment to closing costs. Working with a team of trusted professionals will ensure a smooth journey.

The Loan Officers at Emerald Home Loans can help connect you with a local Real Estate Agent. Together, we can help answer any questions you might have.

Find out how much you qualify for by applying for home loan with us today. It only takes a few minutes!

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