Now that you’ve made the exciting decision to buy a home and are gearing up to make it happen, it’s important to plan ahead for all the costs involved in the process. While your down payment might be top of mind, don’t overlook closing costs! Here’s what you need to know from the team at Kerby & Cristina Real Estate Experts.
What Are Closing Costs?
Simply put, closing costs are the additional fees you’ll need to cover at closing. These can vary depending on the price of the home and how you’re financing it, but they’re a part of every buyer’s journey. At Kerby & Cristina, we make sure there are no surprises! According to Freddie Mac, here are some typical costs to expect:
- Application fees
- Credit report fees
- Loan origination fees
- Appraisal fees
- Home inspection fees
- Title insurance
- Homeowners insurance
- Survey fees
- Attorney fees
Some are one-time expenses, while others—like homeowners insurance—are the first of your ongoing responsibilities once you own your new home.
How Much Are Closing Costs?
As Freddie Mac explains:
“Closing costs vary greatly depending on your location and the price of your home. Typically, you should be prepared to pay between 2% and 5% of the home purchase price in closing fees.”
For example, if you’re buying a home at today’s median price of $422,600, closing costs could range from $8,452 to $21,130. The higher or lower the home price, the more these numbers will fluctuate. At Kerby & Cristina, we’ll help you estimate these numbers so you can budget confidently.
Tips To Reduce Your Closing Costs
If you’re wondering how to lower your closing costs, here are some strategies our team recommends:
- Negotiate with the Seller: In today’s market, homes are staying on the market a bit longer. This gives you the power to ask for concessions. Many sellers might agree to cover some of your closing costs or home inspection fees!
- Shop Around for Home Insurance: With rising home insurance rates, it’s worth comparing multiple quotes to find the best coverage at the right price.
- Explore Closing Cost Assistance: There are programs available to help with closing costs, depending on your income, profession, or location. Our team can guide you toward resources like those from HUD that offer state-specific assistance.
Bottom Line
Planning for closing costs is a smart move, and it doesn’t have to be overwhelming! At Kerby & Cristina Real Estate Experts, we’ve got your back. Connect with us today to get expert advice and make your homebuying journey smooth and stress-free!
