Closing costs are an essential yet often overlooked aspect of the home buying process. These fees encompass various expenses related to finalizing a real estate transaction. This guide unveils the mystery behind closing costs, providing buyers with essential insights into what to expect and how to prepare.

What Are Closing Costs?

Closing costs are fees paid at the closing of a real estate transaction, typically ranging from 2% to 5% of the purchase price. They include:

  • Lender Fees: Costs associated with processing and underwriting the loan.
  • Title Insurance: Protects against potential title disputes.
  • Appraisal and Inspection Fees: Assessing the property’s value and condition.
  • Legal and Recording Fees: Costs for legal services and recording the deed.
  • Escrow cost
  • City/County cost (can be different for each county)

Who Pays Closing Costs?

The closing cost can be different for each county. It’s essential to discuss this with your Doorlight Advisor to understand your specific situation.

How to Prepare for Closing Costs

  • Review the Loan Estimate: Lenders provide a Loan Estimate outlining expected closing costs within three days of applying for a mortgage.
  • Negotiate with the Seller: In some cases, you may negotiate for the seller to cover part of the closing costs.
  • Consider a No-Closing-Cost Mortgage: Some lenders offer this option, but it may result in higher interest rates.
  • Work with a Trusted Doorlight Advisor: Your Doorlight Advisor can guide you through the closing costs, ensuring transparency and understanding.


Closing costs are a vital part of the home buying process, encompassing various fees that contribute to finalizing the purchase. Understanding and preparing for these costs ensures a smoother closing process and avoids unexpected surprises.

How Doorlight Can Assist with Understanding Closing Costs

At Doorlight, our Doorlight Advisors are committed to demystifying the closing process, including closing costs. We provide personalized guidance, clear explanations, and support in negotiating terms that align with your financial situation. Our team’s expertise ensures that you approach closing with confidence, fully aware of all associated costs and how they fit into your home-buying journey. Contact us today to discover how Doorlight can guide you through the closing process, making it a seamless and transparent experience.