Closing costs: What to expect

You've found your home, your mortgage application is approved, and you're ready to move to the next stages: preparing for your closing appointment and paying closing costs.

Closing costs, also known as settlement fees, are up-front expenses you pay to complete your home purchase. Closing costs don’t include the down payment funds. How much you need to pay in closing costs depends on your lender, the type of mortgage, and the home location, but the amount typically ranges from 2% to 5% of your home’s purchase price.

These costs can be paid by you, the seller, or the lender. And, in some cases, you may be able to use monetary gifts from family for all or a portion of your closing costs. Our home mortgage consultants can explain if the loan type you’ve selected allows monetary gifts to be used to pay your closing costs. 

• Origination charges for the application and underwriting fees 
• Services where Wells Fargo selects the service provider, such as the appraisal, credit report, and flood determination service
• Services where you request the service provider, including a pest inspection, survey, and title search 
• Taxes and other government fees like recording fees and other taxes (a lender has no control over these costs) 
• Prepaids are the first payments for your homeowners insurance, mortgage insurance, and prepaid interest 
• Initial escrow payment, which covers the payment of future homeowners insurance and property taxes 
• Other costs, including anything else not covered, such as an optional Owner's Title Policy

This final step in your homebuying journey is a huge milestone. Wells Fargo is here to answer your questions so you can confidently plan and prepare for your closing.