If you’re working with a lender to purchase a home, you’ve probably heard the term closing costs once or twice, but what exactly are they? Closing costs are an extra amount of money that your lender charges you in order to give you a loan. These include some expenses and fees that are required when buying a home. Your closing costs could be anywhere from 2.5-4% of the loan amount you receive, and do not include any Realtor fees. If you feel that these costs are too high, you can always work with the sellers to try and split them!
Items in your closing costs may include:
- Loan or mortgage application fees
- Discount points
- Appraisal fees
- Survey fees
- Underwriting fees
- Title search fees
- Title insurance
- Property taxes
You can also check out this Closing Costs Calculator from Bank of America to estimate what yours would look like here!