When buying a home, there are added costs beyond the down payment. Buyers should be ready to spend 3-6% of the home's price in cash closing costs. This is due to lender fees, taxes, and title services. A list of such items is below.
There are ways to avoid these closing costs, however. The most popular option is to ask the seller to pay for them. For example, if you are buying a house for $200,000 and your lender estimates your closing costs to be $4,000, you can offer the seller $204,000 with $4,000 in seller paid closing costs. This nets the seller the same amount, but saves you the cash.
What is included in your closing costs:
- Lender origination charges
- Homeowner's Insurance
- Initial deposit with lender for your escrow account
- Title services
- Owner's title insurance
- Government recording charges
- Survey fee
- Inspection fee
- HOA dues and transfer fee
- City and County taxes
Talk to a Realtor near you to discuss loan options and closing costs. I specialize in finding great Realtors across the country. Let me connect you with a great agent near you!