Closing costs typically run 2-5% of the purchase price and include: - Lender Fees — Origination, underwriting, and processing fees - Title Insurance — Protects against title defects - Appraisal Fee — Lender requires a property valuation - Escrow/Prepaid Items — Property taxes and insurance held in escrow - Recording Fees — Government fees for recording the deed Buyers and sellers each pay their own closing costs, though this is sometimes negotiable.