The Full Picture
What you'll actually pay
Total closing costs typically run 2–5% of the loan amount, on top of your down payment. Here's exactly where that money goes.
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Your Down Payment
The largest upfront cost — but not a closing cost technically.
3% Down (Conventional)
Minimum for some conventional loans with good credit
$9,000 on a $300K home
3.5% Down (FHA)
Federal Housing Administration — lower credit score OK
$10,500 on a $300K home
5–20% Down (Conventional)
Higher down payment = lower monthly payment & no PMI at 20%
$15K–$60K on a $300K home
0% Down (VA / USDA)
For eligible veterans or qualifying rural properties
$0
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Lender Fees
What your mortgage lender charges to originate your loan.
Origination Fee
Lender's charge for processing the loan
0.5–1% of loan amount
Discount Points
Pre-paid interest to lower your rate permanently
Optional — 1% per point
Appraisal Fee
Required by lender to confirm home's market value
$400–$600
Credit Report Fee
Lender pulls your credit; sometimes rolled into origination
$25–$50
Underwriting Fee
Processing and reviewing your loan application
$400–$900
📄
Title & Escrow Fees
Costs to verify ownership and manage the transaction.
Title Search
Review of public records to confirm clear ownership
$150–$300
Owner's Title Insurance
One-time premium protecting you from title defects discovered later
$500–$1,500
Lender's Title Insurance
Required by lender; covers their interest in the property
$300–$800
Notary/Settlement Fee
The notary who oversees the Act of Sale in Louisiana
$200–$500
📅
Prepaids & Escrow Setup
Upfront costs for ongoing ownership expenses.
Homeowner's Insurance (1 year)
Paid upfront at closing; required by lender
$1,200–$3,000+
Flood Insurance (1 year)
Required if in a flood zone; varies significantly by elevation
$700–$3,000+ (zone dependent)
Property Tax Escrow
Lender collects a cushion to start your escrow account
2–3 months of taxes
Prepaid Interest
Interest from closing date to end of the month
Varies
🔍
Inspection & Other Fees
Third-party services you arrange during the contract period.
General Home Inspection
Highly recommended — covers structure, systems, and safety
$350–$550
Termite/WDO Inspection
Important in Louisiana's climate; sometimes required by loan type
$75–$150
Sewer Scope (if applicable)
Camera inspection of the sewer line — especially for older homes
$150–$300
Survey
Confirms property boundaries; sometimes required or requested
$400–$800
📊 Quick Estimate for a $300,000 Home
Down payment (5%): $15,000 | Closing costs (3%): ~$9,000 | Total cash needed: ~$24,000–$28,000
Many of these costs are negotiable or can be rolled into the loan. Seller concessions — where the seller pays some of your closing costs — are also common. Ask me about strategies to reduce out-of-pocket costs.
💡 Louisiana-Specific Reminder
Flood insurance is one of the most variable costs in Louisiana and can dramatically affect your monthly budget. Before falling in love with a home, always ask me to check the flood zone — it affects both your insurance premium and your loan requirements.