Closing costs, without the guesswork.
Understand lender charges, third-party fees, prepaid expenses, escrow funding and cash to close.
Talk through your optionsThe price of the home is not the full cash requirement
Closing costs are the charges associated with completing your mortgage and property transaction. They can include lender fees, title and settlement services, appraisal charges, recording costs and other items. Prepaid expenses and initial escrow funding may also affect the amount needed at closing.
The down payment and closing costs are different. Your Loan Estimate and later Closing Disclosure help organize the transaction’s charges and credits.
Read the categories
| Category | What to understand |
|---|---|
| Loan costs | Origination charges and services related to the mortgage. |
| Other transaction costs | Taxes, recording charges and other applicable items. |
| Prepaids and escrow | Amounts paid in advance or deposited for future property expenses. |
| Credits and deposits | Lender or seller credits and money already paid can affect the final cash to close. |
Points and lender credits
Discount points generally involve paying more upfront in exchange for a lower interest rate. A lender credit can reduce upfront costs in exchange for different loan pricing. Compare offers using the same loan amount, term, rate-lock assumptions and date where possible.
Request the explanation
Ask Harman to walk through the estimated cash to close and identify which amounts are lender charges, third-party charges, prepaid expenses or refundable deposits. Final amounts can change as the transaction develops.
FURTHER READING
CFPB: Understanding your Loan Estimate CFPB: What is a Loan Estimate? CFPB: No closing cost loans and refinancingGeneral educational information. Your loan’s requirements and terms must be confirmed for your application. Content reviewed November 4, 2026.