Today we’re talking about Closing Costs for Buyers.
If you’re planning to purchase a house, you need to be prepared to pay between 1% and 3% in closing costs once your house closes. Keep in mind, this is IN ADDITION TO your down payment!
A lot of buyers – especially first time home buyers – do not realize this added expense. It’s a good idea to plan and budget for closing costs when you purchase a home.
In the video above, I walk through a Buyer’s Settlement Statement. You’ll receive one of these once you get closer to closing. It itemizes each closing cost item that you’ll be responsible for.
Keep in mind, this is not a comprehensive list. The important thing to remember is that you will need to bring between 1% and 3% to the closing table in addition to your down payment!
Example Closing Cost Items
Prorations and Adjustments
HOA Working Capital Fee
Impounds – A.K.A. Escrow
A few months of homeowners insurance
A few months of property taxes
Lender’s Title Policy
Loan Closing Fee
Government Recording Charges
State Documentary Transfer