What are closing costs?
When people are planning to purchase a home they usually plan for the down payment but are thrown off-guard when they hear about paying the closing costs. It’s important to note that closing costs are separate costs from the down payment. Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome. These costs can vary anywhere between 2-5% of the total purchase price of the home depending on the type of financing used.
What do these costs typically include?
Government recording costs, appraisal fees, credit report fees, lender origination fees, title services, tax service fees, survey fees, attorney fees, underwriting fees.
It’s important to work with a team of professionals to understand exactly how much you’ll need to budget for closing costs. An agent can help connect you with a lender to answer any questions you might have.