---
title: "Closing Costs & More: Understanding the Final Steps of Buying a House"
description: Closing costs include all of the expenses and service fees that are required to finalize your mortgage during the final stages of buying a home.
image: https://info.sdhda.org/hubfs/SDHDA_Blog_ClosingCosts_More-UnderstandingtheFinalStepsofBuyingaHouse.jpg
---
[](https://www.sdhda.org)
- Programs
- [Homeownership](https://www.sdhda.org/homeownership)
- [First-Time Homebuyer](https://www.sdhda.org/homeownership/first-time-homebuyer)
- [Repeat Homebuyer Program](https://www.sdhda.org//homeownership/repeat-homebuyer-program)
- [Governor's House Program](https://www.sdhda.org//homeownership/governors-house-program)
- [Home Improvement](https://www.sdhda.org/homeownership/home-improvement)
- [Downpayment Assistance](https://www.sdhda.org/homeownership/downpayment-assistance)
- [Tools](https://www.sdhda.org/homeownership/tools)
- [My SDHDA Loan](https://www.sdhda.org/homeownership/my-sdhda-loan)
- [Lenders](https://www.sdhda.org/homeownership/lenders)
- [Realtors](https://www.sdhda.org/homeownership/realtors)
- [Renting](https://www.sdhda.org/for-renters)
- [Rental Assistance](https://www.sdhda.org/for-renters/rental-assistance)
- [Rental Housing Search](https://www.sdhda.org/for-renters/rental-housing-search)
- [Do I Qualify](https://www.sdhda.org/for-renters/do-i-qualify)
- [Affordable Rental Housing Frequently Asked Questions](https://www.sdhda.org/for-renters/affordable-rental-housing-frequently-asked-questions)
- [Fair Housing and Your Rights](https://www.sdhda.org/for-renters/fair-housing-and-your-rights)
- [Tips For Renters](https://www.sdhda.org/for-renters/tips-for-renters)
- [Legal Services of SD](https://www.sdhda.org/for-renters/discrimination-complaints)
- [Property Management](https://www.sdhda.org/property-management/education-and-training)
- [Education and Training](https://www.sdhda.org/property-management/education-and-training)
- [Fair Housing and Legal](https://www.sdhda.org/property-management/fair-housing-and-legal)
- [Property Management Resources](https://www.sdhda.org/property-management/management-resources)
- [Program Compliance](https://www.sdhda.org/property-management/program-compliance)
- [Social Programs](https://www.sdhda.org/social-programs/)
- [Disaster Relief Funding](https://www.sdhda.org/social-programs/disaster-relief-funding)
- [Security Deposit Assistance](https://www.sdhda.org/social-programs/security-deposit-assistance-housing-development)
- [Homeowner Rehabilitation Program](https://www.sdhda.org/social-programs/homeowner-rehabilitation-program)
- [Emergency Solutions Grants Program](https://www.sdhda.org/social-programs/emergency-solutions-grants-program)
- [Paint-South Dakota](https://www.sdhda.org/social-programs/paint-south-dakota)
- [Continuum Of Care](https://www.sdhda.org/social-programs/continuum-of-care)
- [Section 811 PRA Program](https://www.sdhda.org/social-programs/section-811-pra-program)
- About
- [Contact Us](https://www.sdhda.org/about/contact-us)
- [Agendas & Minutes](https://www.sdhda.org/about/agendas-minutes)
- [Annual Conference](https://www.sdhda.org/about/annual-conference)
- [Events](https://www.sdhda.org/about/events)
- [Investors](https://www.sdhda.org/investors/liquidity-reports)
- [Liquidity Reports](https://www.sdhda.org/investors/liquidity-reports)
- [Disclosure Reports](https://www.sdhda.org/investors/disclosure-reports)
- [Financial Reports](https://www.sdhda.org/investors/financial-reports)
- [Annual Reports](https://www.sdhda.org/investors/annual-reports)
- [Municipal Advisor Disclosure](https://www.sdhda.org/investors/municipal-advisor-disclosure)
- [Blog](https://blog.sdhda.org/)
- [Contact](https://www.sdhda.org/about/contact-us)
- Search
[Home](https://sdhda.org/) [](https://sdhda.org)
- [Homeownership](https://www.sdhda.org/homeownership/home-ownership)
- [First-Time Homebuyer](https://www.sdhda.org/homeownership/first-time-homebuyer)
- [Repeat Homebuyer Program](https://www.sdhda.org/homeownership/repeat-homebuyer-program)
- [Governor's House Program](https://www.sdhda.org/homeownership/governors-house-program)
- [Home Improvement](https://www.sdhda.org/homeownership/home-improvement)
- [Downpayment Assistance](https://www.sdhda.org/homeownership/downpayment-assistance)
- [Tools](https://www.sdhda.org/homeownership/tools)
- [My SDHDA Loan](https://www.sdhda.org/homeownership/my-sdhda-loan)
- [Lenders](https://www.sdhda.org/homeownership/lenders)
- [Realtors](https://www.sdhda.org/homeownership/realtors)
- [Renting](https://www.sdhda.org/renting/for-renters)
- [Rental Assistance](https://www.sdhda.org/for-renters/rental-assistance)
- [Rental Housing Search](https://www.sdhda.org/for-renters/rental-housing-search)
- [Do I Qualify](https://www.sdhda.org/for-renters/do-i-qualify)
- [Affordable Rental Housing Frequently Asked Questions](https://www.sdhda.org/for-renters/affordable-rental-housing-frequently-asked-questions)
- [Fair Housing and Your Rights](https://www.sdhda.org/for-renters/fair-housing-and-your-rights)
- [Tips For Renters](https://www.sdhda.org/for-renters/tips-for-renters)
- [Legal Services of SD](https://www.sdhda.org/for-renters/discrimination-complaints)
- [Housing Development](https://www.sdhda.org/housing-development/housing-development)
- [Housing Development Resources](https://www.sdhda.org/housing-development/housing-development-resources)
- [HOME Program](https://www.sdhda.org/housing-development/home-program)
- [Housing Tax Credits](https://www.sdhda.org/housing-development/housing-tax-credits)
- [Housing Opportunity Fund](https://www.sdhda.org/housing-development/housing-opportunity-fund)
- [Housing Trust Fund](https://www.sdhda.org/housing-development/housing-trust-fund)
- [Housing Development Programs](https://www.sdhda.org/housing-development/housing-development-programs)
- [Plans, Forms and Resources](https://www.sdhda.org/housing-development/plans-forms-and-resources)
- [Application Submission](https://www.sdhda.org/housing-development/application-submission)
- [Property Management](https://www.sdhda.org/property-management/education-and-training)
- [Education and Training](https://www.sdhda.org/property-management/education-and-training)
- [Fair Housing and Legal](https://www.sdhda.org/property-management/fair-housing-and-legal)
- [Property Management Resources](https://www.sdhda.org/property-management/management-resources)
- [Program Compliance](https://www.sdhda.org/property-management/program-compliance)
- [Business Partners](https://www.sdhda.org/property-management/business-partners)
- [Social Programs](https://www.sdhda.org/social-programs/paint-south-dakota)
- [Paint-South Dakota](https://www.sdhda.org/social-programs/paint-south-dakota)
- [Continuum Of Care](https://www.sdhda.org/social-programs/continuum-of-care)
- [Emergency Solutions Grants Program](https://www.sdhda.org/social-programs/emergency-solutions-grants-program)
- [Section 811 PRA Program](https://www.sdhda.org/social-programs/section-811-pra-program)
- [About](https://www.sdhda.org/about/about-sdhda-south-dakota-housing-development-authority)
- [About SDHDA](https://www.sdhda.org/about/about-sdhda-south-dakota-housing-development-authority)
- [Disclosure Reports](https://www.sdhda.org/about/disclosure-reports)
- [Investors](https://www.sdhda.org/investors/liquidity-reports)
- [Liquidity Reports](https://www.sdhda.org/investors/liquidity-reports)
- [Financial Reports](https://www.sdhda.org/investors/financial-reports)
- [Annual Reports](https://www.sdhda.org/investors/annual-reports)
- [Municipal Advisor Disclosure](https://www.sdhda.org/investors/municipal-advisor-disclosure)
Your source for expert information on housing in South Dakota
# Closing Costs & More: Understanding the Final Steps of Buying a House
Buying a house can be an exciting journey, but it isn’t always as simple as 1,2,3. After the fun of house-hunting and having your offer accepted, there’s still one more major step. Before you grab the keys to your new home, you’ll need to take care of your closing costs.
**Here are a few things you need to know about closing costs.**
## What are closing costs?
Your closing costs include all of the expenses and service fees that are required to finalize your mortgage, and they are paid at the closing of the real estate transaction. Closing is the point when the title of the property is transferred from the previous owners to the new homeowners.
## How much are closing costs?
Closing costs typically amount to about **two to five percent** of the loan principal. A good starting point is to ask your real estate agent approximately how much it’ll cost you. Knowing what range your closing costs will fall into before you make your downpayment can give you time to save some extra money. Often times, a lot of the fees are negotiable. Be sure negotiate when possible, and don’t forget that you can shop around for lenders with better fees at closing.
## What do closing costs include?
Closing costs can vary based on the property you purchase and the type of loan you select, but they typically include an appraisal, credit check and title search.
- An **appraisal** is contracted out to confirm the market value of your home
- Your **credit report** will help lenders determine your interest rate
- **The title search** is made in order to ensure no one else has claim to your future property
**Don’t let closing costs take you off guard. Prepare for these often overlooked fees.**
- [Tweet](https://twitter.com/share)
### Subscribe to Our Housing Newsletter
### Posts by Topic
- [Homeownership (120)](https://info.sdhda.org/topic/homeownership)
- [Latest News (74)](https://info.sdhda.org/topic/latest-news)
- [Renting (45)](https://info.sdhda.org/topic/renting)
- [Property Development (22)](https://info.sdhda.org/topic/property-development)
- [News (18)](https://info.sdhda.org/topic/news)
### Recent Posts
[](https://cta-redirect.hubspot.com/cta/redirect/1744228/3628c32d-c191-4069-a4f1-d2ecc1411498)
- Main Menu
- [About](https://www.sdhda.org/about/about-sdhda-south-dakota-housing-development-authority)
- [Homeownership](https://www.sdhda.org/homeownership)
- [Housing Development](https://www.sdhda.org/housing-development)
- [Investors](https://www.sdhda.org/investors/)
- [Lender List](https://www.sdhda.org/homeownership/first-time-homebuyer/first-time-homebuyer-participating-lender-list)
- [Property Management](https://www.sdhda.org/property-management)
- [Renting](https://www.sdhda.org/for-renters)
- [Social Programs](https://www.sdhda.org/social-programs)
- [Blog](http://blog.sdhda.org/)
- Resource Links
- [sdhousingsearch.com](http://sdhousingsearch.com/)
- [Governor’s House](https://www.sdhda.org/homeownership/governors-house-program)
- [SD HERO - Homebuyer Education](http://sdhomebuyered.org/)
- [Housing for the Homeless](http://www.housingforthehomeless.org/)
# Contact
[P.O. Box 1237, 3060 East Elizabeth Street, Pierre, SD 57501](https://goo.gl/maps/qaN44UEeRXn)
Phone: [605-773-3181](tel:6057733181) Fax: [605-773-5154](fax:+605.773.5154) [info@sdhda.org](mailto:info@sdhda.org)
© 2018 All rights reserved. [](https://epicosity.com/)