Fees vary according to the details of your loan. The average borrower will pay between 2% and 5% of the loan amount in various closing costs and prepaid expenses when they close on a mortgage. The fees you will pay are outlined in your Loan Estimate that your lender is required to provide within 3 business days of your application. Be sure to review the loan estimate carefully and ask questions if there is something you do not understand.
Examples of typical closing costs and prepaid expenses include:
- Loan origination fee
- Discount points
- Credit report
- Flood certification
- Application/Commitment fee
- Appraisal
- Prepaid interest
- Homeowners insurance premium
- Mortgage insurance premium
- FHA, VA, and USDA premiums
- Attorney’s fees
- Title search fee
- Lender’s title insurance
- Owner’s title insurance
- Recording fees
- Home inspection
- Pest inspection
- Property survey
- Property taxes
