Thinking about a home in Northwest D.C., but also eyeing options in Maryland or Northern Virginia? Closing costs can look very different from one side of the border to the other, and that can change your cash-to-close by thousands. You want a clear, practical way to compare before you write an offer. In this guide, you’ll learn what buyer closing costs include, how D.C., Maryland, and Virginia differ, and simple steps to estimate your number with confidence. Let’s dive in.

What closing costs include

Closing costs are the one-time fees and prepaid items you pay at settlement. They are separate from your down payment. They generally include lender charges, third-party fees like title and appraisal, government taxes and recording fees, and prepaids placed into escrow such as property taxes and homeowners insurance.

Most buyers can plan for roughly 2% to 5% of the purchase price in closing costs. That range is national guidance and your exact number depends on the property, loan, and jurisdiction. The Consumer Financial Protection Bureau explains how lenders disclose these fees and what appears on your Loan Estimate and Closing Disclosure.

To keep it simple, track two buckets:

• Lender and loan-related charges. Origination, underwriting, points, appraisal, credit report, and mortgage insurance when applicable.
• Third-party and government charges. Title search and insurance, settlement or attorney fees, recording fees, transfer or recordation taxes, and prorations.

Who pays what can be negotiated in your contract and local custom matters. Your lender must provide a Loan Estimate early in the process and a Closing Disclosure at least three business days before settlement, which helps you verify the amounts for your specific deal.

D.C., Maryland, and Virginia: key differences

Government taxes and recording fees

These are the taxes and fees charged to transfer ownership and record the deed and mortgage. The payer can vary. In many markets sellers pay some transfer taxes and buyers pay some recordation fees, though contracts can shift this. Always confirm the local practice for the exact address.

• District of Columbia. Most closings show both a real property transfer tax and a deed or mortgage recordation tax or fee. The combined impact is often notable compared to nearby jurisdictions. You can verify current schedules with the D.C. Office of Tax and Revenue and review the D.C. property tax calendar when estimating prorations.
• Maryland. Maryland uses a mix of state and county transfer or recordation mechanisms. Montgomery County and Prince George’s County can have different local levies and practices, and parties often split some charges by custom. Check statewide guidance at the Maryland Department of Assessments and Taxation and county details on the Montgomery County site.
• Virginia. Northern Virginia localities such as Arlington and Fairfax collect state recordation taxes plus local fees. Totals often tend to be lower than D.C. at comparable prices, though exact numbers vary by locality. Start with the Virginia Department of Taxation and locality pages like Arlington County or Fairfax County.

Title insurance and settlement fees

Title research confirms the seller can convey clear ownership. Lenders require a lender’s title policy. An owner’s title policy is optional for the buyer and highly recommended. Who pays for the owner’s policy is local custom. Premiums follow filed rate tables by state and insurer. For background on coverage and policy types, review the American Land Title Association overview of title insurance.

Lender fees

Lender charges are set by the lender and the loan program, not by the state. That means origination, underwriting, points, and appraisal fees can vary more by lender than by jurisdiction. Shopping lenders can make a meaningful difference in your cash-to-close.

Inspections, surveys, and reports

Buyers typically pay for inspections, including general home, radon, pest or termite, and any specialty checks. In older Northwest D.C. homes, structural, roof, and mechanical inspections are common. Condos often involve document review fees that can be allocated by local custom or contract.

Prepaids and escrow deposits

Prepaids are not fees. They are upfront deposits for things like homeowners insurance, initial tax escrow, HOA or condo dues, and property tax prorations based on the time of year you close. D.C., Maryland, and Virginia follow different tax calendars, which can change how much goes into escrow at closing. Confirm the tax billing schedule for the exact city or county.

Miscellaneous recording and courier costs

Smaller items like deed recording charges, notary, wire, or courier fees vary by locality and are usually modest. They can add up, so include a small cushion when you budget.

Real-world examples at 800,000 dollars

Below are simple, illustrative scenarios to help you compare across borders. These are estimates only. Exact amounts depend on the property, your lender, and current local tax schedules.

Assumptions:

• Purchase price: 800,000 dollars.
• Loan: 80% loan-to-value, so 640,000 dollars financed.
• Lender and loan charges plus title and prepaids: 1.5% to 3.0% of price.
• Government transfer or recordation taxes and recording fees vary by jurisdiction.

Example: Northwest Washington, D.C.

• Lender, title, and prepaids: 1.5% to 3.0% equals 12,000 to 24,000 dollars.
• Government taxes and recordation: 1.0% to 2.0% equals 8,000 to 16,000 dollars.
• Estimated total buyer closing costs: about 2.5% to 5.0% of price. That is roughly 20,000 to 40,000 dollars.
• Tip: D.C. closings often include both transfer-type and recordation charges, which can lift the total. Verify current schedules with the D.C. Office of Tax and Revenue.

Example: Maryland buyer (Montgomery County)

• Lender, title, and prepaids: 1.5% to 3.0% equals 12,000 to 24,000 dollars.
• Government taxes and recordation: 0.5% to 1.5% equals 4,000 to 12,000 dollars.
• Estimated total buyer closing costs: about 2.0% to 4.5% of price. That is roughly 16,000 to 36,000 dollars.
• Tip: Maryland uses state and county mechanisms. County-level levies can move the total up or down.

Example: Northern Virginia buyer (Arlington or Fairfax)

• Lender, title, and prepaids: 1.5% to 3.0% equals 12,000 to 24,000 dollars.
• Government taxes and recordation: 0.3% to 1.2% equals 2,400 to 9,600 dollars.
• Estimated total buyer closing costs: about 1.8% to 4.2% of price. That is roughly 14,400 to 33,600 dollars.
• Tip: Many Northern Virginia localities have lower combined transfer and recordation burdens than D.C. Always check the exact city or county schedule.

Estimate your number in 20 minutes

Use this quick workflow before you start making offers:

1. Ask a lender for a sample Loan Estimate. Request a typical estimate for your loan type and price point. This sets expectations for origination, points, and appraisal. The CFPB site explains how to read it.
2. Ask your agent for local norms. Your agent can flag how taxes and fees are usually split in the neighborhood and share sample settlement statements from recent nearby sales.
3. Request a title fee quote. A title company or settlement agent can estimate title premiums and recording fees for the exact parcel.
4. Estimate appraisal and inspections. Many urban single-family appraisals run a few hundred dollars. Inspection packages can vary based on scope and property type.
5. Calculate prepaids and prorations. Use the most recent tax bill and the local tax calendar to estimate property tax escrow and prorations. For D.C. specifics, review the D.C. property tax calendar.
6. Add a cushion. Include 500 to 2,000 dollars for miscellaneous items like wire, courier, notary, or condo document fees.
7. Express your total as a percentage. Convert your estimate to a percent of the purchase price. This makes it easy to compare across D.C., Maryland, and Virginia.

Smart ways to reduce closing costs

• Ask for seller help. Request a seller credit toward specific closing costs if allowed by your loan program and supported by the market.
• Shop at least two lenders. Rate and fee competition can reduce points and origination charges.
• Compare settlement providers. Title premiums follow state-filed rate tables, but some ancillary settlement fees can vary. Ask for a written estimate.

Trusted resources to verify current rules

• Use the D.C. Office of Tax and Revenue for transfer and recordation information.
• Check the D.C. property tax calendar for billing cycles and proration timing.
• Review statewide and county guidance on the Maryland Department of Assessments and Taxation and the Montgomery County site.
• Confirm Virginia recordation and local levies with the Virginia Department of Taxation, plus locality pages such as Arlington County and Fairfax County.
• Learn the basics of title insurance at the American Land Title Association overview of title insurance.

When you are comparing a few addresses, verify the rates and fee schedules right before you draft an offer. Municipal and county rules can change.

Ready to compare across the border?

If you are choosing between Northwest D.C., Bethesda, or Northern Virginia, you deserve a clear, side-by-side picture of your cash-to-close. Our team guides you through the numbers, shares real settlement statements from nearby sales, and coordinates precise estimates from lenders and title professionals so you can move forward with confidence. To get a personalized worksheet for your price point and neighborhoods, connect with the Graciela Haim & Heinen Group of TTR Sotheby’s International Realty. We are here to help you plan, negotiate, and close smoothly.

FAQs

What are typical buyer closing costs in the D.C. metro?

• Many buyers pay about 2% to 5% of the purchase price in closing costs. Your total depends on lender fees, title charges, and local transfer or recordation taxes.

In D.C., who usually pays transfer and recordation charges?

• It depends on contract terms and local custom. Both transfer-type and recordation charges are common line items in D.C. closings, and the allocation can be negotiated. Confirm current schedules with the D.C. Office of Tax and Revenue.

How do closing costs compare across D.C., Maryland, and Virginia for an 800,000 dollar home?

• Using illustrative ranges, a D.C. buyer might see roughly 2.5% to 5.0% of price, Maryland about 2.0% to 4.5%, and Northern Virginia about 1.8% to 4.2%. Exact amounts vary by locality and lender.

Will my Loan Estimate include everything I will pay?

• It covers loan-related and many third-party charges. Some prorations, seller-paid items, and final government taxes or fees may be adjusted on the Closing Disclosure issued a few days before settlement.

Are there programs that can help with closing costs?

• Yes. City, state, and nonprofit programs offer down payment and closing cost assistance, especially for first-time buyers. Eligibility and availability vary by location and program. Ask your lender and agent to point you to current options in your target area.