Closing Costs – Simplified

 

As a future homeowner, you know all about a down payment and how it works, but do you understand your closing costs?

 

What Are Closing Costs?

Closing costs are the accumulated expenses outside of the actual purchase of a home. These can be an assortment of property taxes, title insurance, appraisal fees, escrow costs, and more. The number of closing costs depends on the type of loan selected.

 

Closing Cost Calculation

When you buy a home, your closing costs will generally be somewhere between 2-5% of the purchase price, though this varies depending on your loan, lender, and state. Your fees will also influence your closing costs, some of which are listed below.

  • Application fee
  • Home inspection fee
  • Homeowners’ insurance
  • Escrow fee
  • Origination/Underwriting fees

Again, your fees will vary, so be sure you look into which fees apply to your mortgage. These should be found in your Closing Disclosure, which you will receive approximately three days before closing.

 

Available Resources

If you’re looking for ways to calculate possible loan amounts and learn more before your Closing Disclosure arrives, visit HERE to help point you in the right direction:

 

Looking for more information concerning closing costs? Contact us!