What fees will you owe on closing day?
Buying a home can be hectic. You’re coordinating meetings, arranging for financing and the house inspection, and making moving plans – all this and more on top of your usual responsibilities. It can seem like you’re being pulled in a million different directions as you approach closing day and prepare to move into your new house.
In all the commotion it can be easy to forget budgeting for closing costs. These are fees owed on, or by, closing day that must be paid for your house purchase to be complete. Most of these fees are in addition to, and separate from, your mortgage loan (although some closing costs can be tacked onto your mortgage).
Closing costs can amount to a significant expense. Experts recommend budgeting at least 1.5% of the purchase price toward closing costs.
To give you a rough idea of what to expect, some of the most common expenses are listed below. These expenses are approximations only – they may vary by region, and are prone to frequent changes. Your real estate agent can help you further define more precise numbers.
Click here for the full document