Process · 5 min read
What closing costs should I expect on a home loan?
July 17, 2026 · Written by Bill Egan, NMLS 7342
Short answer
Plan on lender fees, title insurance, recording, a few days of prepaid interest, and deposits for taxes and insurance. Transfer taxes and who pays them are often a local custom, and they are negotiated in the contract. A Loan Estimate lists the actual file. Anyone quoting one round number before an application is guessing.
01
Why this comes up
You were quoted one round number, then title, prepaid interest, and tax deposits showed up. The pain is not knowing what you actually have to bring to the table.
02
Where this goes wrong
A round-number quote left out title, prepaid interest, or escrow deposits. The Loan Estimate is higher. You do not have the difference. Signing is delayed or the deal dies while everyone argues about a number that was never a real estimate.
03
What we do about it
We work from a Loan Estimate, not a cocktail-napkin percentage. Lender fees, title, recording, prepaid interest, and escrow deposits are listed. If a number omits title, we say it is not a complete quote. We send the money when the file is clear — we do not invent a junk-fee round number to look cheap.
04
How to get ready
Budget origination or points, appraisal, title, recording, prepaid interest, and escrow. Transfer taxes follow the contract and local custom. Ask every quote whether title is included. A Loan Estimate after application is the real list. Anyone quoting one percentage before that is guessing.