If you’re planning to buy a home this year, make sure you don’t forget about closing costs—they’re an important expense you need to consider.

Most buyers are aware that home inspections happen, but not everyone understands what they actually include or how much they can vary depending on the location. Let’s take a closer look at what these inspections cover and how they differ depending on where you’re buying.

What Are Closing Costs?

When you close on a home, you’ll have some extra costs called closing costs. These are the fees and payments that come with finalizing your purchase. Every buyer pays them. According to Freddie Mac, closing costs usually cover things like homeowner’s insurance, title insurance, and several other fees related to your loan and the home purchase.

• Getting your loan application started

• Reviewing your credit report

• Kicking off the loan origination process

• Scheduling a home appraisal

• Setting up a home inspection

• Checking on the property survey

• Working with your attorney

National vs. Local: Why the Numbers Look So Different

When you look up closing costs online, you’ll usually find a national range of about 2% to 5% of the home’s purchase price. That’s a good place to start when budgeting for your new home, but it doesn’t give you the full picture. Your actual closing costs can vary depending on several factors, including:

• Local taxes and fees (like transfer taxes or recording fees)

• Service costs for things like title work and attorney help in your area

When you're looking at buying a home, the price is definitely a big factor. But don’t forget, state laws, tax rates, and costs for things like title and attorney fees can really affect what you end up paying. That’s why it’s smart to chat with experts early on. Knowing these details ahead of time helps you set a clear budget and gives you more control before you even begin your house hunt.

To give you a general idea, here’s a breakdown of typical closing costs by state for the median-priced home in each area, based on current factors (see map below):

Looking at the map, you’ll see that in some states, typical closing costs hover around $1,000 to $3,000. But in a few areas, those costs can jump up to $10,000 to $15,000. That’s quite a difference—especially if you’re buying your first home. That’s why it’s so important to know what to expect upfront.

If you want a clear idea of what fits your budget, the smartest move is to chat with a local agent and a lender. They can crunch the numbers based on your price range, loan options, and the exact area you’re interested in.

If you’re checking out your state’s number and thinking about how to lower that cost, NerdWallet offers a few tips that might help you save some money.

• Negotiate with the seller – you might be able to get credits toward your closing costs.

• Shop for homeowner’s insurance – compare coverage and rates before choosing one.

• Look into assistance programs – depending on your state, job, or neighborhood, there may be options to help. Your agent or lender can guide you to what’s available.

 Bottom Line

Closing costs are an important part of buying a home, but they often vary more than people expect. Understanding what these costs are—and how you might be able to lower them—can really help you feel more confident about your purchase.

Let’s break down the usual closing costs around here and put together a