When buying a home, most buyers consider how much they need to save for a down payment but many are surprised by the closing costs they also have to pay. To ensure you’re prepared to buy a home, you need to understand what closing costs are and how much you should budget for.
What Are Closing Costs?
Closing costs are a collection of fees involved with your transaction. They can vary by location and situation, but closing costs typically include:
• Government recording costs
• Appraisal fees
• Credit report fees
• Lender origination fees
• Title services
• Tax service fees
• Survey fees
• Attorney fees
• Underwriting Fees
How Much Will You Need to Budget for Closing Costs?
Understanding what closing costs include is important, but knowing what you’ll need to budget to cover them is critical, too. In the Maryland, Virginia, and Washington DC closing costs are typically 3% of the total purchase price of your home. This amount can slightly fluctuate, depending on your loan type and down payment, but it’s a good number to plan on.
What’s the Best Way to Make Sure You’re Prepares for Closing?
Work with a team of trusted real estate professionals to understand exactly how much you’ll need to budget for closing costs. I can help connect you with an experienced lender, who can “run the numbers” to give you a breakdown of costs and can answer any lending questions you might have.
It’s important to plan for both the down payment and closing costs when buying a home. Work with Robyn Porter who can answer your questions, navigate the complexities of buying a home, and help you feel confident throughout the process.
Categories: Buying a home, Quick Tips
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