Getting ready to purchase a home is a huge financial undertaking. While you are probably aware of having to save up for a down payment, you might not know about closing cost fees. Don’t be taken by surprise at the closing table; here’s what you need to know about closing costs.

What are closing costs?

Closing costs are the fees charged for services performed during the home purchasing process that you will pay at closing. Closing is the final step of the loan process and is a meeting between you (the buyer), the seller, and closing officer (a lawyer or title/escrow company representative, depending on the state). You will review the legal documents provided in your loan package and execute all required documents. This step is extremely important, as it is the final confirmation of the loan terms as discussed with your lender.

What fees are included in closing costs?

The closing costs you might have to pay will vary based on the property, where you live, and the loan you choose. The following are a few of the most common fees you may see.

Again, closing costs will not be the same for everyone as they vary by region. On average, most homebuyers typically pay about 2 to 5 percent of the home purchase price. For example, if the home costs $250,000, you might pay between $5,000 and $12,500 in closing fees.

Can I avoid closing costs?

It is likely you might be able to avoid some closing cost, but not all. Here a few ways to save on closing costs.

Your lender will provide you with an estimate of what closing costs will be at the beginning of your application process, which will allow you the chance to shop around to find the best lender and deal for you. After finding a lender and going through the loan process, you will receive a closing disclosure, or the final closing cost total, at least 3 business days prior to closing. This is your time to make sure everything looks right and if you have questions or find a mistake, you have time to contact your lender. If you’re worried about how much you’ll pay in closing costs, there’s plenty of options for you! NFM participates in most state bond programs that provide closing cost assistance.

To learn more about closing costs or bond programs, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!

Are you ready to purchase your first home? The homebuying process can get overwhelming, especially when considering all your financing options. While there are several mortgage options available, these are the top loan products for first-time homebuyers.


A conventional, or conforming, loan is not insured or guaranteed by the federal government. This loan option adheres to guidelines set by Fannie Mae and Freddie Mac. With this loan, you can choose between a 15 or 30-year term, with a fixed or adjustable interest rate. Conventional loans are typically used by borrowers with good/great credit and typically require a higher income.


An FHA (Federal Housing Administration) is a government-insured loan. This loan is popular among first-time homebuyers because of their low minimum down payment. This loan requires only a 3.5% minimum, which is much lower than other loan options. You might also pay fewer closing costs.


VA loans are guaranteed by the United States Department of Veterans Affairs for eligible American Veterans and active duty service members. These loans were designed to guarantee service members a federally funded home with their no down payment requirement and up to 100% financing. Information on eligibility for VA loans can be found on the VA website.

Purchasing your first home is a huge milestone. Having a qualified mortgage professional by your side to help you choose the right loan option will ensure a smooth homebuying experience. Let them help you start the homebuying process by getting pre-approved today!

If you have any questions about these loan products, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the homebuying process, click here to get started!