In addition to your down payment, you are required to pay closing costs when buying a home. No one is exempt from these costs, and the majority of these costs are considered 3rd party fees (not necessarily related to your home loan). FYI – The word “closing” or “at closing” means escrow. You pay your closing costs and down payment “at closing” or at escrow, typically 1-3 days before your home loan closes (the day you get keys and the home is officially yours).
In this article and video, you will learn:
(1) What are closing costs
(2) How much are closing cost
(3) What fees make up your closing costs
(4) The 5 options you have in paying your closing costs
Understanding Your Closing Costs – Intro from Dan
What are closing costs?
Closing costs are a variety of fees associated with buying a home. These fees are in addition to your down payment and can often times vary depending on the type of loan program, rate preference (additional costs associated with buying down your rate), price of home, and length of rate lock. Closing costs are paid at closing with your down payment.
How Much Are Closing Costs & What Are the Fees?
Below I’ve outlined an example of typical closing costs for a purchase transaction. The total amount of your closing costs can vary, but a general rule of thumb is to estimate 2% of the sales price (please note: the fees w/ the red arrow are the 2 fees that the lender control):
Mortgage Concierge Page and follow steps one and two.
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