Are you thinking about buying a house? Apart from your down payment, there’s another financial aspect you need to consider: closing costs. These costs are essential for finalizing your home loan and getting those keys in your hands. Understanding them can be a little complicated, but we’re here to simplify it for you. Let’s break down what closing costs involve before you wrap up your loan.
**What Are Closing Costs?**
Closing costs are the fees charged by your lender, real estate agent, and other parties involved in your home purchase. These fees cover a range of charges like property expenses, mortgage application procedures, and document processing. Generally, as the homebuyer, you’ll be responsible for most of these costs, although sellers often handle real estate agent commissions and transfer fees.
**What Do Closing Costs Total?**
Closing costs usually amount to about 3-6% of the loan value. So, if you’re taking out a $200,000 mortgage, expect closing costs to be between $6,000 and $12,000. You’ll get a detailed Closing Disclosure before you final