The Home Buyer's Guide To Closing Costs

Dated: August 16 2018

Views: 72

Closing costs are the administrative and legal fees that come with purchasing a property. Typically, buyers pay the closing costs. But, there are situations where the seller takes care of closing costs if it is agreed upon during negotiations (this is why it’s important to hire a competent buyer’s agent!).  

There are different fees that need to be paid when escrow closes. The closing usually happens about 30-45 days after the offer has been accepted or whenever escrow ends. While the nationwide average closing cost is about 2.1%, a buyer must be ready to have at least 2-3% of the home's sold price on hand to pay at closing.

It may vary from state to state but generally here are the closing costs:

Homeowners insurance - typically you will have to pay this for the first year.

Escrow fees - this goes towards the escrow company's services who oversee the purchase and transfer of the home.

Appraisal fees - this goes towards the company that appraises the home to ensure it's in line with the neighborhood market.

Credit report - this is run by the lender when trying to determine the interest rate of the loan and to help gauge credit-worthiness.

Legal fees - can run $300-$600, depending on your attorney and services you will require.

Origination fee - lender administration fees.

Recording fee - paid to make the official record of the transaction.

Underwriting fee - paid to the lender to determine if the loan will be granted.

Application fee - fee to process the application for the loan.

Title insurance – you are paying this to protect yourself from undisclosed issues with ownership.

Property tax - paid to local jurisdiction.

Survey fees – paid to make sure property lines and boundaries are correct. 

There are some other common fees like brokerage commission fees, document stamps, courier fees, document taxes and more.

Closing costs are part of the equation when buying a home. Make your purchase with 100% confidence by understanding exactly what you’re getting when you sign the paperwork. A reliable, experienced and trustworthy agent can guide you from start to finish and make it a positive experience.


As I always say, buying a home is a big step in anyone's life and I feel honored to be able to share this experience with my clients and their families. Meet our team and let us help you in your home buying journey or call us at (907) 720-4663- we’re here to help!

Blog author image

Vanna & Co. Real Estate

Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....

Latest Blog Posts

How to Keep Molds Out of Your Home

Mold is the last thing any homeowner wants to find in their home. It's not only unattractive and stinky, but it also poses a major health risk to you and your family. Checking gutters and

Read More

Numbers Don’t Lie – It’s Still a Great Time To Sell in Alaska

Numbers Don’t Lie – It’s Still a Great Time To Sell [INFOGRAPHIC]Some HighlightsHeading into the end of the year, you might wonder if it’s still a good time to sell your.

Read More

Knowledge Is Power When It Comes to Appraisals and Inspections in Alaska

Knowledge Is Power When It Comes to Appraisals and InspectionsBuyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. That’s

Read More

Tips on Making A Peaceful Home

Many things in our world are beyond our control, but your home environment is one of them. There are a number of easy improvements you may do to bring some much-needed tranquility into your home.

Read More