Don’t Let Closing Costs Surprise You!

When saving to buy a new home, many people forget about the closing costs involved when purchasing their home.

Remember, when you apply for a mortgage, you will receive a “loan estimate” from your lender within 3 days of you making application. You should receive a closing disclosure at least 3 days before the scheduled closing of your new home.

What exactly are closing costs?

According to Trulia:

 “Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.)”

Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. As mentioned before,

Closing costs are typically between 2% and 5% of your purchase price.

Trulia continues to give great advice, saying that:

“…understanding and educating yourself about these costs before settlement day arrives might help you avoid any headaches at the end of the deal.”

Communicate with Your Lender and Realtor.

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

Contact us here or call us at 386-931-4683 with any real estate questions that you may have.

 

Thank you!