Closing costs for a homebuyer can vary significantly based on several factors, including the location of the property, the purchase price of the home, the type of mortgage loan, and local regulations. On average, closing costs typically range from 2% to 5% of the home's purchase price. However, it's essential to remember that this is just an estimate and could be higher or lower in specific situations.

Here are some common expenses that may be included in a homebuyer's closing costs:

Loan-related costs: These include application fees, loan origination fees, and points (optional fees paid to lower the interest rate on the mortgage).

Appraisal fees: Lenders often require an appraisal to determine the home's value before approving the loan.

Title fees: These include costs for a title search, title insurance, and any associated attorney fees to ensure there are no liens or legal issues with the property's title.

Escrow fees: Some states or lenders require an escrow account to hold funds for property taxes and insurance.

Prepaid expenses: Homebuyers may need to prepay property taxes, homeowners insurance, and mortgage interest, depending on the time of closing.

Recording fees: Fees associated with recording the deed and other necessary documents with the local government.

HOA fees: If the property is part of a homeowners association, the buyer may need to pay prorated HOA fees.

It's essential for homebuyers to carefully review the Loan Estimate provided by their lender, which outlines the estimated closing costs. This document is given to borrowers within three business days after submitting a mortgage application, according to the Consumer Financial Protection Bureau (CFPB) regulations. By reviewing and comparing Loan Estimates from different lenders, homebuyers can get a clearer picture of the total closing costs they can expect to pay.