Closing Costs for Buyers

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 Dues

Property Taxes

HOA Working Capital Fee

Loan Charges

Prepaid Interest

Application Fee

Processing Fee

Underwriting Fee

Appraisal Fee

Mortgage Insurance

Impounds – A.K.A. Escrow

A few months of homeowners insurance

A few months of property taxes

Title Charges

Lender’s Title Policy

Escrow Fee

Loan Closing Fee

Government Recording Charges

Warranty Deed

State Documentary Transfer