Closing costs for home purchases vary across different states and regions in the United States. In this article, we use California as an example to introduce various fees. However, please note that minor fees and loan-related costs may differ during the actual transfer process. It is advisable to verify specific costs with your agent in practice.
Closing Costs for Cash Purchases
In US real estate transactions, cash buyers are generally required to pay the following fees:
Earnest Money Deposit - Part of the down payment
Escrow Fee - Approximately $600–$1,200 (calculated as a percentage of the home price)
Home Inspection Fee - Approximately $300–$400 (varies based on the property's square footage)
Notary Fee - Approximately $50–$120
Messenger Fee - Approximately $50–$150
Hazard Fire Insurance - Approximately $600–$1,000
Documentary Transfer Tax - $300–$600 (calculated as a percentage of the home price)
Recording Fee - Approximately $80–$100
Closing Costs for Financed Purchases
In US real estate transactions, buyers using financing are generally required to pay the following fees:
Earnest Money Deposit - Part of the down payment
Escrow Fee - Approximately $600–$1,200 (calculated as a percentage of the home price)
Title Insurance - Approximately $400–$800 (calculated as a percentage of the loan amount)
Home Inspection Fee - Approximately $300–$400 (varies based on the property's square footage)
Bank Charges - Such as bank appraisal fees, credit report fees, loan application fees (required for financed purchases)
Appraisal Fee - (Approximately $300–$400)
Notary Fee - Approximately $50–$120
Messenger Fee - Approximately $50–$150
Hazard Fire Insurance - Approximately $600–$1,000
Documentary Transfer Tax - $300–$600 (calculated as a percentage of the home price)
Recording Fee - Approximately $80–$100