A buyer’s estimated closing costs worksheet is a line-by-line list of the fees you expect to pay at settlement, built before you have an official Loan Estimate in hand so you can plan your savings, compare lenders, and catch inflated charges later. Total closing costs typically run 2% to 5% of the purchase price, split across lender fees, third-party services, government charges, prepaid items, and loan-specific insurance or funding fees. Amounts vary by state and loan type, but the categories below belong on almost every worksheet.
Start With Closing Costs Versus Cash to Close
Two numbers on the worksheet look alike and aren’t. Closing costs are the combined lender fees, third-party charges, government fees, and prepaids required to finalize the mortgage. Cash to close is the bigger figure: your down payment plus those closing costs, minus credits you’ve already put down or negotiated. Cash to close is what actually leaves your bank account on closing day.
Your earnest money deposit, usually 1% to 3% of the purchase price, gets subtracted from cash to close. It isn’t an added cost. If the deal closes it applies toward your down payment or closing costs; if it falls through under the terms of your contract, you get it back. Keep earnest money on the worksheet as a credit line, not a fee line, or you’ll double-count it.
Lender Fees
Origination Charges and Discount Points
The origination fee pays the lender to process, underwrite, and fund the loan. It’s quoted as a percentage of the loan amount and generally falls between 0.5% and 1% on conventional mortgages. On a $350,000 loan, budget $1,750 to $3,500. Some lenders bury this in the interest rate rather than showing it as a line item, so comparing offers means looking at fee and rate together.
Discount points are optional. One point equals 1% of the loan amount and typically drops your rate by about 0.25 percentage points, though the exact trade varies by lender and market. Points pay off only if you stay in the loan long enough for the monthly savings to exceed what you handed over upfront.
Credit Report and Rate Lock
The credit report fee is the only charge a lender can collect before issuing a Loan Estimate, and the CFPB describes it as typically less than $30.1Consumer Financial Protection Bureau. How Much Does It Cost to Receive a Loan Estimate Mortgage credit report costs have been climbing, so ask for the exact figure.
A standard rate lock (30 to 60 days) usually costs nothing. Extensions do. If closing slips, expect roughly 0.125% to 0.375% of the loan amount for each additional 15 days. On a $400,000 loan that’s $500 to $1,500 per extension. Leave a line on the worksheet for a possible extension so a delay doesn’t blow the budget.
Third-Party Services
Appraisal
The lender orders an independent appraisal to confirm the property is worth the price. Single-family appraisals generally run $400 to $700, with rural or complex properties higher. It’s one of the earliest out-of-pocket costs because it’s often paid when ordered, not at closing.
Title Search and Title Insurance
A title search checks public records for competing claims; title insurance covers defects the search may miss, such as an unknown lien or a forged deed. The average owner’s title policy runs about 0.42% of the purchase price according to Fannie Mae data.2First American. How Much Does Title Insurance Cost On a $400,000 home that’s roughly $1,680, though the actual number is set by your state’s rate rules. The lender also requires a separate lender’s title policy, typically cheaper.
Home Inspection
A general inspection isn’t technically a closing cost, since it’s paid outside the loan process, but it belongs on the worksheet. Expect $300 to $500 for a standard single-family home. Specialty add-ons like termite, radon, or sewer-scope inspections can push the bundle past $1,000.
Government Fees
Recording fees are what your county charges to file the new deed and mortgage. They vary widely, usually $50 to $250. Some jurisdictions also charge a transfer tax as a percentage of the sale price. Rates range from zero in some states to over 2% in others, so on a $400,000 home this line could be anywhere from $0 to more than $8,000. Look up your local rate early. It can be one of the largest items on the worksheet.
Prepaid Items and Escrow Deposits
Prepaids fund recurring costs that start immediately. You’ll prepay interest from the closing date through the end of that month, which is why closing early in a month costs more in prepaid interest than closing late. You’ll also pay the first year’s homeowners insurance premium in full so coverage is in place from day one.
On top of that, the lender sets up an escrow account for property taxes and insurance going forward and collects a two-to-three-month cushion at closing to seed it. The exact deposit depends on your local tax rate and insurance premium, both of which swing a lot by location. Use a placeholder based on quotes from a local insurance agent and your county assessor’s site.
Mortgage Insurance and Funding Fees by Loan Type
This is the section where worksheets go wrong most often, because the numbers depend entirely on which loan you’re using. Put the right line on your worksheet.
Conventional Loans and PMI
On a conventional loan with less than 20% down, you’ll pay private mortgage insurance. PMI generally runs 0.2% to 2% of the loan amount per year depending on credit score and down payment, and it drops off once you reach 20% equity. There isn’t usually a big upfront PMI charge at closing, so this shows up mainly in your monthly payment rather than your cash-to-close line.
FHA Loans
FHA loans carry an upfront mortgage insurance premium of 1.75% of the base loan amount, plus an annual premium of 0.45% to 1.05% depending on term, loan amount, and down payment.3U.S. Department of Housing and Urban Development. FHA Mortgage Insurance Premiums The upfront premium can be rolled into the loan, so it may not require cash, but it does increase what you owe. On a $300,000 loan the upfront charge alone is $5,250. Most FHA borrowers who put less than 10% down pay the annual premium for the life of the loan.
VA Loans
VA-backed loans skip monthly mortgage insurance, but most borrowers pay a one-time funding fee at closing. For first-time use with less than 5% down, the fee is 2.15% of the loan amount. It drops to 1.5% with at least 5% down and 1.25% with 10% or more. Second-time users putting less than 5% down pay 3.3%. Veterans receiving VA disability compensation and certain surviving spouses are exempt.4Veterans Affairs. VA Funding Fee And Loan Closing Costs
USDA Loans
USDA guaranteed loans charge a 1% upfront guarantee fee and a 0.35% annual fee.5USDA Rural Development. USDA Single Family Housing Guaranteed Loan Program Overview Like the FHA premium, the USDA upfront fee can be financed. The annual fee is spread across your monthly payments.
Seller Credits
In many transactions, the seller agrees to cover part of the buyer’s closing costs. These credits are negotiated in the purchase contract and reduce your cash to close. Each loan program caps how much the seller can contribute:
- Conventional: 3% of the sale price if your down payment is under 10%, 6% if it’s 10% to 25%, and 9% if you put 25% or more down.6Fannie Mae. Interested Party Contributions (IPCs)
- FHA: up to 6% of the sale price.7Federal Register. Federal Housing Administration Risk Management Initiatives Revised Seller Concessions
- VA: normal closing costs like the appraisal and recording fees have no percentage cap, but concessions for items the seller wouldn’t customarily pay (such as the funding fee or prepaid taxes) are limited to 4% of the property’s reasonable value.4Veterans Affairs. VA Funding Fee And Loan Closing Costs
A seller credit can never exceed your actual closing costs and can’t be redirected to your down payment or handed back as cash. Add a credit line at the bottom of your worksheet so you can plug in a concession figure once negotiations settle.
From Worksheet to Loan Estimate
Your worksheet is a planning tool. The Loan Estimate is the legally binding version, and lenders must deliver it within three business days after receiving your application. Federal rules define an “application” as six specific pieces of information:8Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide
- Your name
- Your income
- Your Social Security number, so the lender can pull credit
- The property address
- An estimate of the property’s value
- The loan amount you’re seeking
Once all six are in, the three-day clock starts. Collect Loan Estimates from at least three lenders. The form is standardized, which makes side-by-side comparison against your worksheet straightforward, and even small differences in origination charges or rate quotes compound over 30 years. The CFPB publishes an interactive Loan Estimate explainer that walks through each section so you know what you’re reading.9Consumer Financial Protection Bureau. Loan Estimate Explainer Any line on the Loan Estimate that looks materially different from your worksheet is a question worth asking before you sign.