Closing Costs Cheat Sheet
Five things to check before a number at the bottom of a page surprises you.
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- Five checks that take the shock out of the closing table
- No mortgage background required
- Where to look next once you know what's coming
What's inside
- Ask your lender for a Loan Estimate within three days of applying, then actually read it.It's required by law. Most buyers file it away without opening it.
- Question anything labeled “administrative fee” or “processing fee”.These names are vague on purpose. Ask what each one covers.
- Compare your Closing Disclosure to your Loan Estimate before you sign anything.Some fee categories are legally not allowed to go up between the two. If one did, ask why.
“Now you know closing costs exist. Nobody volunteers what happens next: which of these fees actually move if you push, how the date you close changes what you owe, or what a seller credit is really worth compared to a lower price. That's the lesson nobody hands you either.”
Questions buyers ask
How soon must a lender give me a Loan Estimate after I apply for a mortgage?
By law, your lender must send a Loan Estimate no later than three business days after receiving your application. It lists the loan's interest rate, monthly payment, and closing costs. Many buyers file it away unread, but it's one of the few closing cost numbers you get before you're committed to anything.
Can closing costs increase from the Loan Estimate to the Closing Disclosure?
Some can, some can't. Fees paid to your lender or its affiliates, like origination fees, can't increase at all. A group of third-party fees can rise by up to 10 percent in total. Other costs, like homeowners insurance or property taxes, can change based on updated information. Compare both documents line by line.
How much should I budget for closing costs?
Plan on 2 to 5 percent of your loan amount, on top of your down payment. That range covers lender fees, title costs, prepaid interest, and escrow deposits, and it doesn't include the price of the home itself. The exact number depends on your loan type, location, and lender.
When do I receive the Closing Disclosure before closing?
By law, your lender must give you the Closing Disclosure at least three business days before your closing date. That window exists so you can compare it against your Loan Estimate and flag any unexplained increases before you're at the table signing documents you can't renegotiate.
Sources
Get the checklist, free
One click to download. The full Home Buyer Course is also free if you want to go deeper.