The price of the home is not the final sale price, we are telling you this now, so you won’t be alarmed on closing day! The closing day comes with additional costs on top of the sale price. These costs add up to be about 2% to 7% of the sale price. These
– A fee will be charged to you for running your credit report.
Appraisal – A fee for the appraisal. This is an important task to make sure the home’s value matches the size of the loan you are getting.
– You’ll need pay to have the title of the house transferred to you.
– Any cost associated with documents needing recording for the deed and mortgage, or attorney fees.
– A must-do if you want to be confident that the home you are buying does not have any major structural issues. Estimate around $500 for this task.
- You’ll want this purchased as soon as the home is in your name. This will often cost you a few hundred dollars a year but protects you from
damage from ceiling and exhaust fans, the furnace, plumbing, appliances, and the sump pump.
– This is two months of prepaid property taxes and mortgage insurance payments.
There’s no way to give you a set number for your closing costs. But, you can estimate by plugging in all the numbers above and adding them up. Make sure you have enough saved to cover these costs after your initial down payment.