Did You Remember to Budget for Closing Costs?

Dated: 01/22/2020

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Tammy Wiggins Have You Budgeted for Closing Costs

Buying a home is one of the largest financial transactions most people make in a lifetime. In addition to saving for the down payment, there are many other costs associated with buying a home; home inspections, appraisals and escrow fees are considered closing costs and are out of pocket costs to both buyers and seller. If you are financing the home, then there are additional lender fees to consider as well.

The Basics of Closing Costs

Closing costs are typically out of pocket costs associated with buying, or selling, a home. Some loan programs will allow you to “finance” most of these costs by adding the cost to the loan balance, but it’s important to remember that the home must still appraise for the additional value and not all programs allow you to do this. It’s better to plan for the extra cost which can range from 3-7% of the home’s purchase price.

Typical Closing Costs

The full list of closing costs involved in your specific transaction while be outlined on a form called the Loan Estimate and Closing Disclosure Form (CD). This will be provided once you have entered the settlement/escrow period. It will disclose costs associated with concluding the transaction. You can expect to see items related to loan fees and costs, appraisal, title insurance and transfer fees, processing and recording fees, hazard insurance and property tax costs among many others.

If you are considering a home purchase, it’s time to speak with a local lender to get a full understanding of the costs associated with buying a home. In this way, you can ensure you have saved what you need to close on your dream home. 

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Tammy Wiggins

Service about you that moves you! Tammy Wiggins is known for integrity, diplomacy, & sincerity in all her dealings. First & foremost, she strives to be someone her clientele & colleagues can put their....

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