One thing I always emphasize with clients: closing costs are more than just a footnote on your mortgage journey. They’re entirely separate from your down payment and can add up to 2%–5% of your loan amount—not the home's purchase price. This is money due up front, covering everything from lender and property fees to legal, tax, insurance, and escrow charges. Over my 30 years in the mortgage business—much of it spent helping self-employed borrowers navigate these details—I've seen buyers surprised by the list: origination and underwriting fees, appraisals, inspections, surveys, title work, attorney and recording costs, prepaid taxes and insurance, and those all-important initial escrow funds.
Typically, buyers pick up most of these costs, while sellers cover their own side. In slower markets, sometimes concessions can offset a portion, often through a higher offer price. My advice after closing over 3,000 loans: always compare lender estimates, review your final disclosure as soon as it’s available, and don’t hesitate to ask about credits, assistance, or even duplicate fees. Careful planning here helps you avoid draining your savings and keeps your purchase on solid ground—especially if your income or finances don’t fit the usual mold.
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