Beyond the down payment, buyers and sellers face a collection of fees due at the end of the transaction. Those fees are closing costs. They typically range from two to five percent of the purchase price and cover services required to complete the deal.

Common buyer costs include loan origination fees, appraisal, title insurance, prepaid taxes and insurance, and recording charges. Sellers often pay real estate commissions, transfer taxes, and any agreed seller concessions. Local custom and negotiation determine who pays which items.

Lenders provide a loan estimate early and a closing disclosure closer to the end so parties can see the numbers in advance. Surprises still occur when last-minute adjustments appear. Smart buyers and sellers budget for closing costs rather than treating them as an afterthought.

The check written at closing is often larger than first-time buyers expect.