The check you have to write beyond the down payment. Itemized, in plain English.

2 to 4 percent of purchase price. The line items, the negotiating levers, the surprises.

The short answer

For a first-time buyer in Arizona, closing costs typically run 2-4% of the purchase price.

On a $400,000 home: $8,000-$16,000. On a $500,000 home: $10,000-$20,000. On a $600,000 home: $12,000-$24,000.

This is on TOP of your down payment. Most first-time buyers underestimate this and get a nasty surprise late in the process. This page is the prevention.

What's in the closing-cost number

Lender fees (paid to your mortgage lender):

Loan origination fee (often 0.5-1% of loan amount)
Application fee, underwriting fee, processing fee (vary by lender)
Credit report fee (small, ~$30-$60)
Appraisal fee ($500-$800)
Discount points if you're buying down the rate (optional, typically 1% of loan per 0.25% rate reduction)

Title and escrow fees:

Title insurance (lender's policy, usually required; owner's policy, usually optional but recommended) - varies by purchase price, typically $1,500-$3,500 combined
Escrow fee ($500-$1,500)
Recording fees (small, $100-$300)
Notary fees (small, $50-$150)

Prepaid items:

Homeowner's insurance (first year typically paid at closing) - $900-$3,500 depending on home
Property tax proration (you'll owe a prorated share of the year's property taxes)
Prepaid interest (interest accrued from closing day to month-end)
Initial escrow deposit (2-3 months of property tax + insurance prepaid into your escrow account)

Mortgage insurance up-front fees:

FHA: 1.75% of loan amount as an up-front mortgage insurance premium (UFMIP), typically rolled into the loan
Conventional with PMI: monthly only, no up-front charge
VA: funding fee (0-3.6% of loan, varies by service status and down payment)

Other:

HOA transfer fee (if applicable) - $200-$1,000
Home warranty (if you choose to add one) - $500-$800
Pest inspection (optional, sometimes required) - $50-$150
Survey (if required) - $300-$600

What's on the closing disclosure (CD)

3 business days before closing, your lender sends you the Closing Disclosure. It's a 5-page document that lists every cost down to the dollar. Federal law requires the 3-day waiting period so you can review before signing.

Review it. Compare to the Loan Estimate you received at application. Most numbers should match within $100. If anything is meaningfully different, ask the lender to explain BEFORE closing.

Reducing your out-of-pocket closing costs

Negotiate seller concessions.

In Arizona purchase contracts, you can ask the seller to contribute toward your closing costs (called a "closing cost credit"). Typical asks: 1-3% of purchase price. In a buyer's market, sellers often agree. In a seller's market, this weakens your offer. Strategic decision.

Roll closing costs into the loan (FHA only, with limitations).

FHA allows some closing costs to be financed into the loan. Lender can walk you through.

Lender credits.

Some lenders offer credit toward closing costs in exchange for a slightly higher interest rate. Math depends on how long you plan to stay in the home.

Down payment assistance programs.

Some assistance programs cover closing costs in addition to or instead of the down payment.

Choose a lender with lower fees.

Lender origination fees vary 0.5-1.5%. On a $400,000 loan, that's $2,000-$6,000 difference. Worth shopping.

What you'll bring to closing

24-48 hours before closing, the title company tells you the exact dollar amount and method:

Cashier's check

for amounts under $50,000 (usually)

Wire transfer

for amounts over (often preferred regardless)

Valid photo ID
Anything else specifically requested (rare)

Bring your phone for any last-minute clarifications. Bring patience. The closing takes 45-90 minutes.

Frequently asked

Can I pay closing costs with a credit card?

Most title companies don't accept credit cards for closing funds. Some lender fees allow it. Don't plan on it.

What's the difference between closing costs and the down payment?

Down payment = the percentage of the purchase price you contribute as equity (3.5%, 5%, 20%). Closing costs = the fees to make the transaction happen (loan, title, insurance, prorations). Different buckets. Both due at closing.

Will the seller pay all my closing costs?

Sometimes, in slower markets. Most often, you negotiate a partial credit. The maximum a seller can credit varies by loan type (FHA caps at 6%; conventional varies).

What if I don't have enough for closing costs?

Options: ask for seller concessions, use a closing-cost-assistance program, use a lender credit, save more before applying. Talking to a lender 60-90 days before you're ready to buy reveals these options early.