Buying a home is exciting, but it’s important to understand all of the costs involved—not just your down payment. One of the most common questions from first-time buyers is, “What are closing costs?”
Here’s what you should know before you close on your new home.
What Are Closing Costs?
Closing costs are the fees associated with finalizing your home purchase. These costs cover the services required to complete your mortgage and transfer ownership of the property.
What’s Included?
Closing costs often include:
- Loan origination fees
- Appraisal fees
- Title insurance
- Escrow fees
- Recording fees
- Homeowners insurance
- Prepaid property taxes
- Prepaid interest
Your lender will provide a Loan Estimate and Closing Disclosure outlining these costs before closing day.
How Much Should You Expect?
While every purchase is different, buyers typically pay between 2% and 5% of the home’s purchase price in closing costs. The exact amount depends on your loan, lender, purchase price, and other factors.
Can Builder Incentives Help?
In many cases, yes. McArthur Homes frequently offers incentives that may help qualified buyers reduce upfront costs through interest rate buy-downs, closing cost assistance, or other financing promotions. Be sure to ask our sales team about current offers available in your community.
Be Prepared Before Closing
Understanding closing costs before you begin shopping can help you budget with confidence and avoid surprises. Our team is happy to answer questions, explain financing options, and help you navigate every step of the buying process.
