Who Pays Closing Costs, the Buyer or the Seller?
Buyers usually pay most closing costs, but sellers pay some too, and who pays what can often be negotiated. Here is how it usually works, how to change the split, and where to see your numbers.
By Jason Green · Buying a Home · Published November 12, 2026 · Updated November 12, 2026 · 6 min read
The short answer: mostly the buyer, but it varies
The CFPB says buyers generally pay the closing costs tied to their mortgage, and may also pay taxes and title charges. The seller may cover some costs depending on your contract and state law. 1
You can negotiate who pays certain costs, within the law and your loan program's rules. 5
Costs buyers usually pay
Lender charges such as origination fees and any points, the appraisal, the credit report, and the lender's title insurance.
Prepaid costs such as homeowners insurance, plus a first deposit into escrow for taxes and insurance if your loan has an escrow account. 3
For most mortgages, your lender must give you a Loan Estimate within three business days of your application, showing your estimated closing costs. 2
Costs sellers usually pay
Sellers pay off their mortgage and any liens from the sale, pay any agent commission they agreed to, and may owe taxes or title charges depending on the contract and local law. 1
Ask your closing company for an itemized seller estimate. Henry's free net proceeds calculator can also give you a rough idea of what you would walk away with.
How seller credits work
A buyer can ask the seller to pay part of the buyer's closing costs, often called a seller credit or concession. It is written into the offer.
Loan programs can limit how much a seller may contribute. Fannie Mae, for example, caps these contributions. Ask your lender which rules apply before you write the offer. 5
See your numbers before closing
For most mortgages, you must receive your first Closing Disclosure at least three business days before you sign the loan. Compare it with your Loan Estimate and ask about anything that changed. 3 4
Before wiring money, confirm the account details with your closing company at a phone number you already trust, never one from an email. The CFPB warns about closing wire scams and points to FBI reports of scammers targeting buyers. 6
Get help from people who do this every week
Your lender can explain each loan fee, and your closing company can explain how charges are split. A good local agent knows what is customary in your county and can negotiate.
Henry connects you with up to three local agents or lenders and never resells your request. Henry is not a lender.
Common questions
Can the seller pay all of the buyer's closing costs?
Possibly, if the seller agrees and it fits your loan program's limits. Ask your lender before relying on it. 5
When will I know my exact closing costs?
You must receive your first Closing Disclosure at least three business days before you sign the loan. Some numbers can still change before closing, and certain changes restart the three-day wait. 4
Do sellers pay closing costs?
Often some. Sellers pay off their mortgage, any agent commission they agreed to, and sometimes taxes or title charges depending on the contract and local law. 1
Want real numbers for your own project?
Free, no obligation, never more than three agents.
Find My Buyer's AgentSources
The Henry Standard
What to expect from a good agent.
Communicate clearly
Agree on how often you will hear from them and who handles your day-to-day questions.
Explain representation and fees
Understand whom the agent represents, potential conflicts and how compensation will be paid.
Help you make informed decisions
Expect evidence for pricing advice and room to consider risks, not pressure to waive protections.
Nothing revolutionary. Just the way we believe doing business should still be done.