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Purchasing a new home can be a wildly exciting time. It can also be an especially stressful one, particularly when unexpected expenses arise that catch you off-guard. Understanding what costs to expect during the process and how you can save on them can not only make the process more affordable and smooth, but can save you a lot of undue stress.

We at Middlefield Bank have put together a guide to help you understand what closing costs are, how much you can expect to pay for them, and some tips on what you can do to reduce your expenses – including taking advantage of a special offer we have running until the end of June.

What Are Closing Costs?

Closing costs are the fees and expenses due at the end of your real estate transaction—basically the final checklist before the keys are officially yours.

Common closing costs include:

• Loan origination fees
• Appraisal and inspection fees
• Title insurance
• Attorney and recording fees
• Prepaid interest and taxes

Some of these are flat fees; others are calculated as a percentage of your loan amount. Either way, they add up.

How Much Will You Pay in Closing Costs?

While exact costs vary, closing fees typically range from 2% to 5% of your home’s purchase price.

For example:

If you’re buying a $300,000 home, you might pay between $6,000 and $15,000 in closing costs.

Factors that affect this range include:

• Your loan type (FHA, conventional, VA, etc.)
• The state or county you’re buying in
• The lenders, title company, and other service providers you use

How to Save on Closing Costs

You can’t avoid closing costs altogether—but you can reduce them with a few smart strategies:

1. Shop around for lenders: Different lenders have different fees. Be sure to compare loan estimates from multiple lenders so you can find the best deal for you.
2. Negotiate with the seller: Often times sellers are willing to cover some – or even all – of the closing costs in order to close a deal
3. Close at the end of the month: If neither you nor the seller are on a strict timeline, closing at the end of the month can be a clever way to help you save by reducing the amount of pre-paid interest you need to cover.
4. Look for discounts and promotions: Many banks will offer promotions that can help reduce closing costs, particularly for first-time homebuyers. For instance, at Middlefield Bank, we’re currently offering $500 off on closing costs until June 30th!

Special Offer: Save $500 on Closing Costs with Middlefield Bank

To make your homebuying journey more affordable, we’re offering $500 off on your closing costs for first-lien, owner-occupied mortgage loans with applications dated on or before June 30, 2025.

Whether you’re buying your first home or moving into your next chapter, we’re here to help make the process smooth—and cost-effective.

Learn More

Don’t Let Closing Costs Catch You Off Guard

When you understand what goes into closing costs—and how to reduce them—you can feel more confident at every step of the homebuying process.

Ready to take the next step?

Talk to a mortgage specialist at Middlefield Bank today to get prequalified and take advantage of our $500 closing cost offer before it expires.

Talk to a Lender & Claim the Promotion