Closing costs, What does it mean?
When it comes to closing costs, buyers are often confused so today I’m going to break down what you need to know.
1. Closing costs are in addition to your downpayment.
2.Sellers can help cover closing costs, depending on market conditions (lately we are not seeing this often unfortunately)
3.Plan on closing costs being around 3% of the home price to be safe. Once you have an accepted offer, your lender can hone this number in for you.
4.Closing costs include title insurance, lender fees, prepaid escrow account items (property taxes and homeowners insurance), closing fee, mortgage points (if needed), appraisal/surveying fees, miscellaneous fees, etc.
5. If you are in a position to pay cash your closing fees are less than if you are using a mortgage.
Buying a home is a big financial decision and understanding both your downpayment and closing cost requirements is key. If you are thinking about buying a home, DM me so we can go over what it will take financially to get you the home you’ve been waiting for!