03/16/2022
As a homebuyer, it’s important to plan and budget for the expenses you’ll encounter when you purchase a home. Here’s some information to help you get started so you’re not caught off guard when its time to close on your home. 🏡>What are closing costs? One possible reason some people are surprised by closing costs may be because they don’t what they are or what they cover. According to U.S. News and World Report: “Closing costs encompass a variety of expenses above your property’s purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments, and homeowners insurance.” In other words, your closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction. 🏡> How much will you need to budget for closing costs? According to the Freddie Mac article mentioned above, the costs to close are typically between 2% and 5% of the total purchase price of your home. Let’s say you find a home you want to purchase for $500,000. Based on the 2-5% estimate, your closing cost fees could be between roughly $10,000 and $25,000. Keep in mind, if you’re in the market for a home above or below this price range, your closing costs could be higher or lower. 🏡> What’s the best way to make sure you’re prepared at closing time? The best way to understand and be prepared for what you’ll need at the closing table is to work with a team of trusted professionals to guide you through the process. With myself as your agent, and my personal relationship with Attorneys, Lenders, and insurance Brokers you’re sure to have the right team working for you!