When you think you’ve completed every step of the home buying journey, from saving for a down payment and getting approved for a mortgage to finding the perfect home and making an offer, there’s one more hurdle to jump — closing costs.
Closing costs can come as an unpleasant surprise to buyers who aren’t prepared for the final expenses of their home purchase. Make sure you understand what closing costs cover and budget for them accordingly.
What Are Closing Costs?
The term “closing costs” is used to encompass a range of fees for the services and expenses required to finalize and approve your mortgage. The seller is responsible for a handful of closing costs, but most of the burden falls on the buyer. You can expect your closing costs to total between 2-5% of your total loan amount. Read more