What Are Closing Costs, and How Much Should I Actually Budget?

Down payment gets all the attention, but closing costs are the number that catches a lot of buyers off guard. Here's what you need to know before you sit down at the table.

Plan on roughly 2–5% of your purchase price on top of your down payment. On a $450,000 home, that's somewhere between $9,000 and $22,500. That range covers things like:

• Lender and origination fees
• Title insurance and title company fees
• Appraisal and inspection fees
• Prepaid property taxes and homeowners insurance
• Recording and attorney fees

It's not one flat number because it depends on your loan type, your lender, and the specific home. But it's real cash you need to plan for beyond your down payment.

Here's the part most buyers don't realize: you have more ways to cover it than you think. Seller concessions, builder closing cost credits, and down payment assistance programs across Collin and Grayson County can often be applied toward closing costs, not just the down payment itself. With the market shifting more in buyers' favor this year, asking for closing cost help in your offer is a lot more realistic than it was a couple of years ago.

The mistake I see most is buyers saving every extra dollar toward a bigger down payment and then getting surprised at closing. The smarter move is knowing your full number early, down payment plus closing costs, so nothing catches you off guard.