And then, somewhere between the handshake and the house keys, a third number shows up that nobody warned you about: closing costs.
For most buyers, that bill runs 2% to 5% of the loan amount, according to data tracked by Freddie Mac.
On a $350,000 home, that's roughly $7,000 to $17,500 due at signing — money that can't be rolled into the mortgage and doesn't buy you a single square foot of house.
The list is long and the names are dull: loan origination fees, appraisal charges, title searches, title insurance, credit report pulls, recording fees, transfer taxes, prepaid interest, and escrow deposits for property taxes and homeowners insurance.
Others are set by law or by your lender and won't budge no matter how hard you push.
The biggest line item is usually lender origination — the fee your bank or mortgage broker charges to make the loan.
It typically runs 0.5% to 1% of the loan amount, but it can climb higher.
Ask for a Loan Estimate, a three-page form lenders must provide within three business days of your application.
Then compare it side by side with competing offers.
A lender's policy protects the bank if someone later claims ownership of your home.
In a handful of states, including Texas and Iowa, the rates are set by regulators, which means you can't shop the price — only the service.
Third-party fees are where shopping actually pays.
Home inspections — not technically a closing cost, but often paid around the same time — run $300 to $500.
Pest inspections, surveys, and flood certifications add a few hundred more.
Here's the part that trips people up: closing costs aren't due on closing day alone.
You'll also need to fund an escrow account, typically two to three months of property taxes and insurance upfront.
On an expensive home in a high-tax state, that alone can run several thousand dollars.
Sellers can agree to cover a portion of closing costs — often 3% to 6% of the purchase price, depending on the loan type.
Lender credits, where you accept a slightly higher interest rate in exchange for lower upfront fees, are another option, though they cost more over the life of the loan.
First-time buyer programs in many states offer grants or forgivable loans specifically for closing costs.
Down payment assistance programs sometimes cover both.
These are worth ten minutes of research before you sign anything.
Credit report fees above $50, courier charges, and vague "processing" line items are worth questioning.
Lenders are required to keep certain fees within 10% of the original estimate, but not all of them.
The smartest move is to ask for a total cash-to-close figure in writing before you fall in love with a house.
Our take: closing costs are the least glamorous part of buying a home and the easiest to overlook when you're distracted by paint colors and school districts.
Treat that Loan Estimate like a competing bid — read every line, question anything vague, and shop at least two lenders.
Final Thoughts
The few hours you spend could keep a few thousand dollars in your pocket.