Buyer's Estimated Closing Costs
An estimate of all costs the buyer will need to pay at closing, including down payment, loan costs, escrow and title fees, and prepaid items.
When Its Used
Provided to buyers early in the process to help them understand total cash needed, and updated when making offers.
Key Sections
Down payment; Loan origination and points; Escrow and title fees; Prepaid taxes and insurance; HOA transfer fees; Inspection costs; Total cash needed
Common Mistakes
Underestimating total costs; Not including prepaid items; Forgetting home warranty; Overlooking HOA fees; Not accounting for reserves
Pro Tip
Use the Loan Estimate as a guide for loan-related costs. Include all potential costs even if they seem small. Better to overestimate than surprise the buyer.
