Calculating Home Closing Costs

Understanding exactly how much money you’ll need for closing costs can be confusing — and if it’s your first time buying a home, you may need some help estimating closing costs. Our closing costs calculator will help you get an idea of the expenses you’ll encounter at closing. And along the way you’ll also learn about what these various fees cover at closing.

It can be difficult to find the loan that best suits your down payment needs. When cash-on-hand is hard to come by, VA and FHA loans offer key options to help you get into a home you can afford. This closing cost calculator can help you understand what kind of savings you’ll need at the closing table. Here are some key details on lending and underwriting for these types of loans.

FHA loan details. FHA loans have unique charges compared to conventional loans. They’re popular because they keep the down payment costs low, but you’ll usually find an upfront fee of about 1.75 percent of the purchase price added to the loan.

VA loan details. You’ll find an additional fee added to VA loans ranging from 1.25 percent to 3.3 percent. With a VA loan, no down payment is required, but other fees are applied to the cost of the loan.

How are Closing Costs and Hidden Fees Calculated?

When you purchase a home, you’ll have to pay taxes and fees on the property, but there’s likely more to pay. You’ll also find other charges at closing like property-related prepaid fees and private mortgage insurance charges. Buyers can expect to find fees that will be paid to the title company hosting and processing the closing, among many others. One potentially large amount of money you’ll need to pay out-of-pocket is the remainder of your down payment— the first portion was paid in the form of earnest money. Ask your lender for an updated closing estimate to help you calculate your closing costs and help keep those illusive hidden fees in check so they don’t take you by surprise.

After your loan is approved, you’ll get a closing estimate from your lender which will include details on the “cash to close” amount that you’ll need to bring to the table. Closing cost calculators are great for estimating what you’ll owe when paying cash for what remains of your down payment. But you should know that most title companies will require a certified check from you and may not accept cash.

Sellers can usually expect to pay out about 3 percent of the total purchase price in the form of realtor fees at closing. Negotiations can change how much the buyer or seller will be required to pay, though. When it comes to your down payment, closing cost calculators are great for understanding what the remaining amount due is going to be.

What Other Hidden Fees Should I Consider?

Depending on the needs of your new home, you may find there’s more to pay out-of-pocket to get your home move-in ready. These hidden costs may not be due at closing, but you’ll have to front the funds nonetheless. You may need to have the home professionally cleaned before you arrive. That can run anywhere from $150 -$250. Does the furnace need to be tuned up? A typical HVAC inspection can run you anywhere from $300 - $500. Do you need to get rid of a garage full of junk? Disposal costs average another $250 - $500.