By David Parks · eXp Realty · The Apollo Group · 2 min read
Closing costs are the fees paid to complete a home purchase, often roughly two to five percent of the price. They include lender fees, title and escrow charges, prepaid taxes and insurance, and more.
| Cost | Paid to | Usually due |
|---|---|---|
| Origination and underwriting | Lender | At closing |
| Appraisal and credit report | Appraiser and credit bureau | Often at application or before closing |
| Title insurance and settlement | Title company | At closing |
| Prepaid taxes and insurance | Insurer and escrow account | At closing |
| Escrow deposits | Your escrow account | At closing |
On a $600,000 purchase, 2% to 5% would be roughly $12,000 to $30,000. Your Loan Estimate shows your actual numbers.
Your lender will give you a Loan Estimate within three business days of applying, and a Closing Disclosure at least three days before closing. Compare them.
Cash needed to close includes your down payment too. Ask your lender for a full estimate early in the process.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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