What are closing costs?
You’ve saved up for your down payment and you’re ready to buy your home – or are you? One of the biggest mistake first-time home buyers make is that they forget they need closing costs.
Closing costs typically range between 2% and 5%, and may include ANY of the following:
- Appraisal
- Attorney fee
- Closing fee or escrow fee
- Courier fee
- Credit report
- Escrow deposit for property taxes and mortgage insurance
- FHA upfront Mortgage Insurance Premium (MIP)
- Flood determination or life of loan coverage
- Home inspection
- Homeowners Association transfer fees
- Homeowners’ insurance
- Lender’s policy title insurance
- Lead-based paint inspection
- Loan discount points
- Owner’s policy title insurance
- Origination fee
- Pest inspection
- Prepaid interest
- Private mortgage insurance
- Property tax
- Recording fees
- Survey fee
- Title company title search or exam fee
- Transfer taxes
- Underwriting fee
- VA funding fee
Can someone else pay my closing costs?
In some cases, you won’t have to pay for all or even any of your closing costs.
Ask your lender about:
- Grant opportunities – available specifically for closing costs
- Seller concessions – in busy markets, some sellers may be willing to help you out to meet a deadline
- Financing closing costs – some types of loans will allow you to finance all or some of your closing costs