You’re almost there! You’ve been saving so long for a down payment on a new house and even set a budget for your monthly mortgage payment. But there’s one more thing you’ll need to consider: closing costs.
Surprisingly, many home buyers get caught off guard by closing costs, which can certainly be an unpleasant surprise if you’re unaware.
According to a 2021 Realtor.com survey of 3,000 adults, 44% said they weren’t aware of all the costs associated with buying a home.
Closing costs encompass a variety of expenses above your property’s purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments, and homeowners’ insurance.
In short, closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction. They cover things like:
Be sure to ask your EHL Loan Officer for a detailed list.
Closing costs are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.
Example:
Keep in mind that if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.
When starting the mortgage process, it’s important to understand all costs involved from the down payment to closing costs. Working with a team of trusted professionals will ensure a smooth journey.
The Loan Officers at Emerald Home Loans can help connect you with a local Real Estate Agent. Together, we can help answer any questions you might have.
Find out how much you qualify for by applying for home loan with us today. It only takes a few minutes!