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Understanding Closing Costs: What Homebuyers Need to Know in 2025

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6. How to Make an Early Closing Cost Estimate
You can estimate your closing expenses in advance using internet tools or preliminary calculations, but your lender will first offer an official Loan Estimate and then a Closing Disclosure.

Setting away 3% to 5% of the home’s purchase is a smart idea. Therefore, budget as least $10,000 for closing costs if you’re purchasing a $350,000 home.

Before making an offer, you can also ask your lender and real estate agent for itemized estimates.

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