Closing Costs Are on the Rise
Most buyers spend a lot of time thinking about home prices, interest rates, and monthly payments. But one trend I've noticed over the last few years is that the actual cost of completing a real estate transaction has been steadily increasing.
While inflation has touched nearly every industry, real estate and mortgage-related services have experienced some particularly noticeable increases.
On the lower end, take credit reports as an example. Not long ago, a tri-merge mortgage credit report typically cost around $35. Today, many lenders are paying closer to $135 per report, and industry experts are already warning of additional increases ahead.
Appraisals have also become significantly more expensive. Depending on the property type and location, appraisal costs today commonly range from $600 to over $1,000. Unfortunately, those costs may be headed even higher.
Beginning November 2, 2026, Fannie Mae and Freddie Mac will require appraisers to use a new appraisal reporting system known as UAD 3.6 (Uniform Appraisal Dataset). The new format requires substantially more structured data, expanded property details, additional reporting requirements, and a redesigned appraisal report format. The goal is to improve consistency, transparency, and data quality throughout the mortgage industry, but many appraisers expect the additional work involved to increase both costs and turnaround times.
Appraisals aren't the only area where buyers and sellers are seeing higher costs. Over the past several years we've also seen increases in:
Escrow fees
Title insurance premiums
Notary fees
Recording fees
HOA document and transfer fees
Homeowners insurance costs
Inspection costs, particularly for specialty inspections such as sewer, roof, foundation, mold, and chimney inspections
In many transactions, buyers today can easily spend several thousand dollars more on closing-related expenses than they would have just a few years ago.
The takeaway is simple: when budgeting for a home purchase, don't focus solely on the down payment and monthly payment. Make sure you're accounting for the full cost of closing the transaction.
As your real estate and mortgage advisor, one of my jobs is helping clients understand these costs upfront so there are no surprises along the way. If you're considering buying, selling, or refinancing and would like an estimate of today's closing costs, feel free to reach out. I'm always happy to help.
