What Are Closing Costs For A Buyer?

Purchasing a home is exciting, but it is important that you are prepared for all the associated expenses to avoid any unpleasant surprises at the closing table. Understanding what closing costs cover and budgeting for them is the best way to avoid these surprises and ensure a pleasant conclusion to your home buying experience.

What are Closing Costs?

Closing costs are the fees and expenses, above and beyond the sales price of the property, required for services to complete a real estate transaction. These fees include title fees, lender fees, and prepaid costs and typically equate to 2-3% of the sales price for home buyers. These costs are paid at day of settlement or the day that you close, along with your down payment.

What Fees are Included in Closing Costs? 

The example below is based on a $755,000 purchase price. Please note that this is just an example and that closing costs depend on many variables so there may be additional fees included or excluded in your transaction.


County Taxes: Credit to the buyer of $1,813.60


Loan Points: $3,534

Processing Fee: $675

Underwriting Fee: $695

Appraisal Fee: $475

Credit Report Fee: $78

Prepaid Interest: $1,569


Homeowners Insurance(for 3 mo):  $367

Property Taxes(for 7 mo): $3,989


Recording Fees(Deed & Mortgage): $109

Recordation Tax to County: $4,863


Survey: N/A

Five Great Reasons to Purchase a Survey:

  • Undisclosed Rights and Easements
  • Undiscovered Encroachments
  • House Built on Incorrect Lot (Yes, I’ve actually heard of this)
  • Size of the Property
  • Adding on in the Future

Settlement Fee: $650

Title Examination: $130

Title Binder Preparation: $75

Title and Judgement Search: $125

Power of Attorney: N/A

Owners Title Policy: $1,718

Reasons why you should have enhanced owners title policy:

  • Protection for as long as you or your heirs own the property
  • Protection from attorney’s fees and other costs involved in defending your right to the property
  • Forgery, defective title, expired power of attorney, property procured under fraud or duress, unknown tax liens, etc.

Lenders Title Policy: $1,974

Homeowner’s Insurance Premium: $1,467

Can I negotiate for the seller to pay my closing costs?

  • Yes, you can negotiate for a seller subsidy meaning the seller gives you a credit towards your closing costs. Keep in mind while negotiating that this credit cannot exceed what your total closing costs will be.

Whether you are new to the home buying process or an experienced buyer, I always suggest linking up with your trusted real estate professional up to six months prior to beginning your search. The real estate market is constantly changing and being proactive is a great way to avoid any unnecessary roadblocks during the search.

Check out some of our past articles and look forward to some Coming Soon articles: 

  • Virtual Showings: Is Matrix the way to go?
  • Does staging make a difference?
  • Settlements During Coronavirus
  • Down Payment Myths

If you have specific questions or would like to set up an in-person meeting to discuss your scenario, please call or email me directly at 703-915-2244 / [email protected]. If you enjoyed this post and would like access to more of my articles/videos, visit the video/blog section of my website at: https://jcurrygroup.com/videos/


Jason Curry

Licensed Realtor: VA & DC

J Curry Group at KW Metro Center

2101 Wilson Blvd #100

Arlington, VA 22201


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About the Author

Jason Curry, founding owner of the J Curry Group, based in Arlington, VA, has a long record of successfully guiding his clients through the home buying and selling process. He epitomizes integrity, energy, hard work, and creative service in every detail of your residential real estate transaction and he has represented sellers, buyers, and investors. Jason is annually a top producer in the area and is respected among clients and colleagues. Jason specializes in applying his expertise and market knowledge to residential properties that consistently exceed the personal and investment goals of his clients. He recognizes the importance of customer service in the real estate industry, and has developed systems and processes to ensure pleased and profitable clients. Grateful for an amazing group of neighborhood friends and contacts, Jason makes sure that new residents are welcomed in a way that has become customary in the Northern Virginia area. Jason is a lifelong resident of the DMV and is a proud alum of George Mason University where he earned his Bachelors degree.