What Are Closing Costs?

You finally found your dream home and your offer was accepted! Now what? 

While most buyers plan ahead and save for their down payment, many are often surprised by the closing costs they’re expected to pay. To ensure you’re not caught off-guard when it’s time to close on your home, here’s a quick rundown of closing costs. 

What Are Closing Costs?

Closing costs are a variety of fees and payments associated with your transaction, and vary depending on the purchase price of the home and method of financing. 

According to Freddie Mac, while they can differ by location and situation, closing 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

Closing costs typically range between 2% and 5% of the total purchase price of your home, so it’s important to budget ahead – not only for your down payment, but for these additional costs as well.

If you need help navigating this process, feel free to contact me anytime.