How this number is made
Closing costs are not one national number. Lender fees, title, and prepaid tax vary. A percent plus the fees you have already been quoted is more honest than a single magic number.
- Put lender, title, and transfer items you expect to scale with price into the percent.
- Put appraisal, survey, and flat lender fees into the fixed line.
Formula
Estimate = price × percent + fixed fees. This is not a Loan Estimate.
Worked example
With the figures already in the form, estimated closing costs is $10,300.
Questions
Are prepaids included?
Only if you put them in the percent or the fixed fee. Prepaid tax and insurance can be as large as the lender fees. Ask for them separately.
Who pays the commission?
Not this page. Commission is on the home-sale commission page. In many contracts the seller pays it, which still affects the price.