What Every Homebuyer Should Know About Closing Costs
Before making the decision to buy a home, it’s important to plan for all the costs you will be responsible for. While you are busy saving for the down payment, don’t forget you will want to prep for closing costs too. Here’s some helpful information on what those costs are and how much you should budget for them.
What Are Closing Costs?
“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome. Closing costs vary depending on the purchase price of the home and how it’s being financed….” Your closing costs are the additional fees and payments you have to make at closing. Closing costs typically include:
- Government recording costs
- Appraisal fees
- Credit report feess
- Lender origination fees
- Title services
- Tax service fees
- Survey fees
- Attorney fees
- Underswriting fees
How Much Are Closing Costs?
Typically closing costs are between 2% and 5% of the total purchase price of your home. With that in mind, here is how you can get an idea of what you will need to budget.
Let’s say you find a home you want to purchase at today’s median price of $384,500. Based on the 2-5% estimate, your closing fees could be between $7,600 and $19,225. But keep in mind, if you are on the market for a home above or below the price range, your closing costs will be higher or lower.
Make Sure You Are Prepared To Close
The best way to do that is by contacting me. I understand how much you will need to save and what you will want to be prepped for.
