MidCity Title team is here to deep dive into closing costs tied to real estate purchases. If you’re reading this, you’re likely in the exciting final stretch of buying your new home or preparing to purchase a home in the near future. Let’s start with saying congratulations! A home purchase is an exciting time for Baton Rouge and New Orleans residents. Whether you’re a first-time buyer or adding another property to your portfolio, one question always comes up before closing day: “How much should I expect to pay in closing costs?”
We’re here to help answer that and set you up for success! Let’s break closing costs down in simple terms with clear facts and answers. Our local title company wants you to know exactly what to expect and can plan your real estate purchase with confidence.
What Are Closing Costs?
“Closing costs” are fees and expenses that come with finalizing your home purchase. These costs are not included in the agreed upon home sale price. Closing costs cover everything from loan origination fees and title insurance to property taxes and legal paperwork. Learn more about “closing” and common real-estate transaction and title terms on our MidCity Title glossary page.
When jumping into the home purchasing process, think of closing costs as the wrap-up expenses that make your home purchase official and legally yours. Closing costs typically range between 2% to 5% of your home’s purchase price, depending on your loan type, location, and the services involved.
How to Estimate Closing Costs for Your Property Purchase
While every home purchase and mortgage is different, you can get a good estimate by looking at your loan estimate form, which lenders are required to provide early in the process. If you’re unsure of where to start or how to read details, your title company can help you calculate more precise numbers based on your property, loan, and local requirements. The team at MidCity Title has numerous years of experience in helping walk through closing cost estimates and details for the Baton Rouge and New Orleans markets.
Who Pays Closing Costs
Now that you understand what closing costs are and how to estimate them, you may be wondering who’s responsible for paying closing costs on a home purchase. Both buyers and sellers have their share of closing costs and who pays what can vary depending on the specific transaction.
Typical home buying scenario: Buyers pay for loan-related fees, title insurance, inspections, and appraisal costs. Sellers often cover the real estate agent commission and certain transfer taxes.
That said, some costs are negotiable during the purchase process. You can sometimes ask the seller to contribute toward your closing costs and they may agree to different terms if it helps seal the deal.
When Are Closing Costs Due
Closing costs are due on closing day. Closing Day will be the the same day you sign the final paperwork and officially take ownership of the home. In most cases, you’ll bring a cashier’s check or wire transfer to cover your share. Your lender or title company will provide an exact figure in advance so there are no surprises. A cashier’s check can be easily secured through your bank.
What Do Closing Costs Cover
Closing costs can feel like a long list of line items, but each one plays a key role in protecting your real estate investment. Common fees associated with closing costs include:
- Loan origination fees – charged by your lender to process your mortgage
- Appraisal fee – verifies the property’s market value
- Title search and title insurance – ensures the property is free of liens or legal disputes
- Recording fees – paid to local parishes to record your deed
- Attorney or settlement fees – manage the legal aspects of the transaction
- Prepaid taxes and insurance – escrow funds for your first year of ownership
Your title company helps manage and itemize all these expenses to keep the process transparent and stress-free. If you work with MidCity Title for your home title, we’ll thoroughly explain all fees and what’s included as well as answer any questions you may have.
Closing Cost Assistance
If closing costs feel overwhelming, you’re not alone. Many Louisiana lenders and local programs offer closing cost assistance for qualifying buyers. If you’re a first-time homeowner, there may be programs specifically set aside to help you. We encourage you to ask your lender or title company about local grants, down payment assistance, or seller concessions that can help ease the financial load.
Frequently Asked Questions About Closing Costs
Q: How much should I expect to pay in closing costs?
A: Most buyers pay between 2% and 5% of the home’s purchase price. For example, on a $250,000 home, you might pay $5,000–$12,500 in closing costs.
Q: Who pays closing costs on a home?
A: Both parties pay different fees. Buyers handle lender and title-related costs, while sellers cover commissions and certain taxes. Some costs can be negotiated.
Q: Do you pay closing costs with a cash purchase?
A: Typically yes. You’ll pay via cashier’s check or wire transfer on closing day. These funds must be verified before the transaction can be completed.
Q: Are closing costs negotiable?
A: Absolutely! You can sometimes negotiate with the seller or lender for credits or reduced fees, especially in a buyer-friendly market.
Q: Do closing costs vary by location?
A: Yes. Costs differ based on local tax rates, insurance requirements, and title fees. Homes in Baton Rouge and New Orleans may have slightly different averages due to parish-specific regulations.
Learn More About Closing Costs with MidCity Title in Baton Rouge & New Orleans
Whether you’ve completed one home purchase or a hundred, you may run into questions around closing costs. Our local title experts are here to help. MidCity Title is proud to serve the Baton Rouge and New Orleans areas with a variety of title services. Contact our Baton Rouge and New Orleans title experts today at (225) 236-4252 or arrange a meeting to visit us in person to dive deeper into closing costs. The MidCity Title team looks forward to serving you!
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