How much money do I need for closing costs?

Closing costs typically run 2%–5% of the loan amount — on a $400,000 mortgage, that's roughly $8,000 to $20,000 — and they're separate from your down payment. They cover lender fees (origination, underwriting), third-party services (appraisal, title insurance, attorney where required), prepaid items (property taxes, homeowners insurance, and interest), and the funding of your escrow account. You'll get a Loan Estimate within three business days of applying and a Closing Disclosure at least three business days before closing, so you can compare and confirm the final numbers. Some costs are negotiable, and you can ask the seller for a credit toward closing or take a lender credit in exchange for a slightly higher rate. Budget for these on top of your down payment so you're not caught short. Factor them into your total at wealthserene.com/tools/home-affordability.