According to a recent survey by Rocket Homes, 41% of home buyers were surprised by the amount of their closing costs. To ensure that you are not included in this percentage, we have compiled a cheat sheet to give you a rundown on closing costs — and tips to prepare yourself for them.
First thing’s first: what are closing costs? U.S. News & World Report’s definition gets right to it:
“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 a nutshell, closing costs are fees paid to a collection of people involved in your transaction.
The most important thing to do when considering closing costs is to build them into your purchase budget. Freddie Mac finds that typically, closing costs are between 2% and 5% of the total purchase price of a home. In order to have enough to cover these costs, you will need to save up and account for them ahead of time.
A surefire way to make sure you are never surprised by the amount of closing costs? Work with an experienced Surterre agent. Your Surterre real estate specialist will help connect you with lenders, answer any and all questions, and see to it that you are informed of all costs every step of the way.
If you are ready to kickstart your home buying journey, contact your local Surterre agent today.
