Closing costs are the fees you pay to finalize your home purchase, in addition to your down payment. Knowing what they cover helps you avoid surprises.
What closing costs usually include
Lender fees for processing the loan.
Title insurance and title company fees.
Appraisal and inspection fees.
Prepaid items such as homeowners insurance and property taxes held in escrow.
Recording and other government fees.
How much should you plan for?
It depends on the price, the loan and the area. Your lender will give you a Loan Estimate that shows the numbers early, and a Closing Disclosure before you sign.
Ways to lower them
Compare lenders and ask about their fees.
Negotiate for the seller to contribute toward your closing costs where it makes sense.
Ask about closing dates, since the date can change prepaid amounts.
Check for assistance programs.
Read everything
Compare your Loan Estimate and Closing Disclosure line by line, and ask about anything you do not understand. I will go over them with you.
Questions about the full cost of buying? Reach out any time.
