Have You Budgeted for Closing Costs?

Dated: 12/10/2019

Views: 1

Have You Budgeted for Closing Costs?

Have You Budgeted for Closing Costs? | MyKCM

Saving for a down payment is a key step in the homebuying process, and it’s not the only piece you need to include in your budget. Another factor that’s important to plan for is the closing costs required to obtain a mortgage.

What Are Closing Costs?

According to Trulia,

When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.”

For those who buy a $250,000 home, for example, that amount could be between $5,000 and $12,500 in closing fees. Keep in mind, if you’re in the market for a home above this price range, your costs could be significantly greater. As mentioned before,

Closing costs are typically between 2% and 5% of your purchase price.

 Trulia gives more great advice, saying,

“There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time.

The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll get this form about three days before closing since, once you (the borrower) sign it, there’s a three-day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your real estate agent is a great resource for getting you all the answers you need.”

Blog author image

Aida Urteaga

As a real estate professional with years of experience successfully helping clients achieve their dreams, I work with both buyers and sellers to secure the best possible deal in the shortest amount of....

Latest Blog Posts

Have You Budgeted for Closing Costs?

Have You Budgeted for Closing Costs?Saving for a down payment is a key step in the homebuying process, and it’s not the only piece you need to include in your budget. Another factor that&rsquo

Read More

Tips to Sell Your Home Faster

Tips to Sell Your Home FasterWhen selling your house, there are a few key things you can prioritize to have the greatest impact for a faster sale:1. Make Buyers Feel at HomeDeclutter your home!

Read More

The True Cost of Not Owning Your Home

The True Cost of Not Owning Your HomeThere are great advantages to owning a home, yet many people continue to rent. The financial benefits are just some of the reasons why homeownership

Read More

The #1 Reason to List Your House in the Winter

The #1 Reason to List Your House in the WinterMany sellers believe spring is the best time to put their homes on the market because buyer demand traditionally increases at that time of year. What

Read More