Closing costs vary widely around the country, as well as from lender to lender. And because buyers and sellers are free to negotiate certain fees, there is significant latitude there as well. For this reason, you should always do your due diligence before making any offers so you can anticipate the closing costs and negotiate with the seller from a secure base of knowledge.

As the buyer you can generally plan to spend an additional 3% to 5% of the loan amount in closing costs. On a $100,000 mortgage, for example, they would be $3,000 to $5,000.

In higher‐tax areas, 5% to 6% is more realistic. The exact figure depends upon the location of the property. Consider any commissions or prepayment penalties that need to be paid. The fees you pay for a closing also vary depending on who is involved and the type of closing it is. A closing could involve a single mortgage, or it could involve a first and a second mortgage.

Closing costs fall into four general categories: loan costs, title fees, government fees, and third party fees. A final factor contributing to your closing costs is the state where the property is located. A 2008 Bankrate.com survey calculated the average origination and title fees on a $200,000 mortgage in each state’s largest cities. They found that the highest costs ranged from $3,500 to $4,000. New York City is the most expensive, with average closing costs running at a$4,015. The costs in the least expensive locations ranged from $2,600 to $2,900. North Carolina is the least expensive in the country, with closing costs at $2,650. It is followed by Kansas, Missouri, Maine and South Dakota.

According to the survey the national average for closing costs is $3,118. You can find the average closing costs for your state by going to Bankrate.com, though it is important to remember that it is only a guide. The specific closing costs for a property can vary depending on multiple factors, making due diligence a must.