Don’t Let Closing Costs Surprise You
March 18, 2022
One thing we always tell potential home buyers is that they need to budget for all the expenses of buying a home and moving when they start looking for a home. While that seems like an obvious thing to do, many people forget a major expense that falls into that. A downpayment is what most people think of when they think about what they have to budget for when buying their home. The thing a lot of buyers don’t consider is that now days they may also have to pay part or all of the closing costs.
One reason you might get caught off guard by these costs is you don’t really know what all they cover or what they are really for. These costs can vary some but for the most part they include:
Government recording costs, appraisal fees, credit report fees, lender origination fees, title services, tax service fees, survey fees, attorney fees, and underwriting fees.
How much do you need to think about budgeting for these costs? According to a Freddie Mac article the costs to close on a property are usually between 2% and 5% of your total purchase price. I would recommend calculating that or letting me help you calculate that way when you find a home you want to purchase. This way you can know ahead of time what those costs might look like. Especially in this market where homes are selling for so much higher prices this can be really important to think about.
Here is the best advice I can really offer you, call me, your trusted real estate professional and let me get you connected with a trusted lender. They can help you understand just what your total budget is for buying a home. Then you and I can get started finding the home of your dreams today! I want to be YOUR realtor! Because in today’s market especially it is so important to understand all the fees and expenses that go into buying a home.