Typical buyer closing costs
| Cost | What it covers | Typical range |
|---|---|---|
| Loan origination | Lender's fee to process the loan | 0.5%–1% of loan |
| Appraisal | Confirms the home's value for the lender | $500–$800 |
| Owner's title insurance | Protects you against title defects | $1,000–$2,500 |
| Escrow fee | The escrow company's fee to manage closing | $500–$1,500 |
| Recording fees | County fees to record the deed and mortgage | $50–$200 |
| Prepaid items | Insurance, prepaid interest, and tax and insurance reserves | $2,000–$5,000 |
| Inspections | Paid up front, not at closing | $400–$800 |
Who pays what
Buyers usually pay loan costs, the appraisal, their escrow fee share, recording fees, prepaid items, and inspections. Who pays the owner's title policy is negotiable in the contract.
Sellers usually pay the listing agent's commission, any buyer's agent compensation they've agreed to, their share of escrow fees, and any concessions they agree to.
How to lower your closing costs
- Ask the seller for a closing-cost credit in your offer.
- Compare Loan Estimates from more than one lender.
- Ask about lender credits in exchange for a slightly higher rate.
- Check whether you qualify for down payment assistance programs that also cover closing costs.
I give every buyer a closing-cost estimate for their price range before we write an offer.
Common questions
How much are closing costs in Arizona?
Usually 2% to 4% of the purchase price for buyers. On a $500,000 home, that's roughly $10,000 to $20,000.
Does Arizona have a transfer tax?
No. Arizona doesn't charge a real estate transfer tax. There's only a small recording fee for the affidavit of property value.
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Rules, rates, and limits change, so confirm current numbers with your lender and escrow officer before you rely on them.