• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Great Price HOME

  • Home
  • Home Search

Don’t Forget to Budget for Closing Costs

May 18, 2021 by Rick Landuyt

Don’t Forget to Budget for Closing Costs | Simplifying The Market

When buying a home, it’s important to have a budget and make sure you plan ahead for certain homebuying expenses. Saving for a down payment is the main cost that comes to mind for many, but budgeting for the closing costs required to get a mortgage is just as important.

What Are Closing Costs?

According to Trulia:

“When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.”

For example, for someone buying a $300,000 home, they could potentially have between $6,000 and $15,000 in closing fees. If you’re in the market for a home above this price range, your closing costs could be greater. As mentioned above, closing costs are typically between 2% and 5% of your purchase price. 

Trulia gives more great advice, explaining:

“There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time.

The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll get this form about three days before closing since, once you (the borrower) sign it, there’s a three-day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your real estate agent is a great resource for getting you all the answers you need.”

Bottom Line

As home prices are rising and more buyers are finding themselves competing in bidding wars, it’s more important than ever to make sure your plan includes budgeting for closing costs. Let’s connect to be sure you have everything you need to land your dream home.

Filed Under: Buying Myths, Down Payments, First Time Home Buyers, For Buyers, Move-Up Buyers, Pricing

Primary Sidebar

Recent Posts

  • The Average Homeowner Gained $64K in Equity over the Past Year June 22, 2022
  • Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans June 21, 2022
  • More Listings Are Coming onto the Market [INFOGRAPHIC] June 18, 2022
  • Home Price Deceleration Doesn’t Mean Home Price Depreciation June 17, 2022
  • A Majority of Consumers Say It’s a Good Time To Sell Your House June 16, 2022

Copyright © 2022 GreatPriceHome.com - COLDWELL BANKER PROFESSIONALS - RICK LANDUYT - 67395 MAIN ST, RICHMOND, MI 48062 - (586) 727-2741