What are the average closing costs for a buyer?
When preparing for a new home purchase, it’s crucial to plan for the average closing costs for buyer hopefuls on a budget. Closing costs are made up of various service charges associated with the entire home buying process, including appraisals and title paperwork. Because closing costs can add up to thousands of dollars, it’s helpful to prepare for the expense.
Here are some of the most common types of closing costs associated with buying a new home:
Appraisal fee
Appraisal fees cover the cost of a professional home appraisal to determine the value of the property. This cost can depend on the size of your home, but generally comes to somewhere between $300 and $400.
Home inspection fee
Professional home inspection fees usually cost a few hundred dollars. While inspections are technically an optional part of the home buying process, most buyers require them to find out if there are any major issues with a home before buying.
Loan origination fee
Mortgage lenders can charge an origination fee for creating the loan itself. This closing cost can vary from one lender to the next, but frequently comes to around 1% of the amount of the mortgage loan.
Title search
The title for your new home needs to be examined for any possible issues such as tax liens. The fee for a title search is typically between $400 and $500 paid to your mortgage lender.
Title insurance
Title insurance is required by lenders to cover the cost of any issues discovered with the property title. Similar to mortgage insurance, this policy protects the lender rather than the buyer. Title insurance often costs around 1% of the total loan amount.
These are not all the possible closing costs for buyers to prepare for. However, these are the most commonly associated with your new home. Inquire with your mortgage lender for more information about additional fees to prepare your budget accordingly.
About the Author
Daniel Martin, Higgins Group Private Brokerage, Licensed in CT, Lic. #RES.6767971
With over two decades of experience in Connecticut real estate, Daniel Martin is a seasoned Realtor at Higgins Group Private Brokerage, renowned for his exceptional market insight and unwavering client dedication. A lifelong Connecticut resident, Daniel's deep roots in the community, coupled with his extensive professional background, provide an invaluable advantage to both buyers and sellers across Fairfield and New Haven Counties.
Daniel's distinguished career is marked by consistent achievement, earning him the prestigious Connecticut Magazine 5 Star Realtor award from 2014 to 2025. He is a perennial Top Producer, recognized as both a Top Listing Agent and Top Selling Agent, a testament to his strategic approach and keen understanding of market dynamics. His expertise spans a broad spectrum of real estate needs, including guiding First Time Home Buyers, navigating transactions for Single and Multi-Family Homes, Land, New Construction, New Residential Developments, Condominiums, Downsizing, and Rentals.
Beyond his impressive track record, Daniel's professional affiliations include memberships with the National Association of REALTORS (NAR), Connecticut Association of REALTORS (CAR), Bridgeport Board of Realtors, Smartmls and Greenwich MLS. His foundational education in real estate from Naugatuck Valley Community College, complemented by studies at Connecticut School of Electronics and Housatonic Community College, underpins his comprehensive understanding of the industry.
Daniel's unique blend of customer service acumen and technological proficiency sets him apart. He leverages every available marketing resource to ensure his clients' homes gain maximum exposure and stand out in the competitive market.
When not orchestrating successful real estate ventures, Daniel cherishes time with his family, including his wife, two children, and four grandchildren. A passionate musician and golf enthusiast, he embodies the vibrant spirit of the Connecticut communities he serves. Daniel's network extends globally, allowing him to facilitate referrals anywhere in the world.
