Once you’re under contract on a home in Centerville or Washington Township, the purchase price is only part of what you’ll need to budget for. Closing costs are the various fees and expenses due at the closing table, and getting a sense of what goes into them ahead of time can keep the final days of your purchase from catching you off guard.
What Closing Costs Actually Cover
Closing costs are really a bundle of separate charges rather than one single fee. Depending on your loan and the specifics of the transaction, they can include lender fees (like an origination or underwriting fee), title insurance and title search fees, an appraisal fee, recording fees charged by the county, and prepaid items such as homeowners insurance or the first installment of property taxes held in escrow. Your lender is required to give you a Loan Estimate early in the process and a Closing Disclosure a few days before closing, both of which break these line items out individually.
Who Pays What
In most purchases, the buyer covers the bulk of their own loan-related costs, while the seller typically pays the real estate commissions and may cover a portion of the title fees, depending on how the contract is written. In Ohio, it’s also common for buyers to ask sellers to contribute toward closing costs as part of the negotiation, particularly in a purchase agreement where the seller is motivated to close. None of this is automatic — it’s all negotiated and spelled out in the purchase contract.
Ways to Estimate Your Costs Early
The best early estimate comes directly from your lender once you’ve applied for a mortgage and received a Loan Estimate. Before that point, your lender or agent can usually give you a general sense of what to expect based on your loan type and purchase price. It’s worth asking early rather than waiting until the week of closing, since it gives you time to plan for the funds you’ll need to bring to the table, on top of your down payment.
Questions to Ask Your Lender and Title Company
As you get closer to closing, it’s reasonable to ask your lender which fees are fixed and which might still change, whether any seller credits have been applied, and how much you’ll need to wire or bring as a cashier’s check. Your title company can also confirm how property taxes will be prorated between you and the seller, since that proration is often one of the larger and less-understood pieces of the final number.
Frequently Asked Questions
Are closing costs the same for every buyer?
No. They vary based on your loan type, lender, the purchase price, and what’s negotiated in your specific contract. Two buyers purchasing similar homes can end up with noticeably different closing cost totals.
Can closing costs be rolled into the loan?
Some loan programs allow certain costs to be financed or covered through a slightly higher interest rate in exchange for lender credits. Whether that makes sense depends on your financial picture, so it’s worth discussing directly with your lender.
When do I find out my exact closing costs?
You’ll receive a Closing Disclosure from your lender at least three business days before closing, which lists the final, itemized costs. Earlier estimates can shift somewhat as the transaction moves forward, but the Closing Disclosure is the figure to rely on.
Kelly Nation is a real estate agent with RE/MAX Alliance serving Centerville, Ohio, Washington Township, and the greater Dayton area. Thinking about buying or selling in the area? Reach out to Kelly Nation with RE/MAX Alliance at 937-609-5852 to get started.
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