What is the typical range of closing costs as a percentage of a home's purchase price?

Closing costs typically range from 2 to 5% of the purchase price and include lender fees, title insurance, appraisal, attorney fees, pre-paid insurance, and property tax escrow. On a $400,000 home, closing costs could be $8,000 to $20,000 in addition to the down payment, an important expense many first-time buyers fail to budget for.