Key Takeaways:
- Closing costs are fees required to obtain a mortgage, so it’s important to account for these in your home-buying budget.
- Closing costs are typically between 2% and 5% of the total cost of your home, which can amount to thousands of dollars depending on your purchase price.
- Linda Craft & Team have all the resources you need to land your dream home in the Triangle—call us at 919-235-0007 today for personalized buying and selling advice!
The Importance of Budgeting for Closing Costs
When you’re closing on your new home, this is the time to finally breathe your sigh of relief—but perhaps, not yet. Buying a home is a huge financial investment, so it’s essential to have a detailed budget for all home-buying expenses. While you most likely know exactly how much your down payment is, do you know how much closing costs are?
What are closing costs?
According to Trulia, closing costs are simply a number of fees that are due when you close on a home. These fees can include title insurance, origination fees, underwriting fees, documentation preparation fees, and more.
How much are closing costs?
Now that you know what closing fees are, you’re probably wondering how much they typically cost homebuyers. Trulia estimates these fees to typically range from 2% to 5% of the total cost of your new home. Therefore, someone buying a $300,000 home could potentially have between $6,000 and $15,000 in closing costs. If you’re interested in homes above this price range, your closing fees could be greater.
Have an open mind on closing day
Although you may believe you’ve already read all the fine print before closing day, odds are you need to take a closer look at your closing documents. As Trulia notes, there will be tons of paperwork presented on closing day, but not enough time to read through them all. Homebuyers should work with real estate professionals ahead of time to access and analyze these documents before sealing the deal on closing day.
Make sure to read the closing disclosure—this document outlines loan terms, closing costs, and any outstanding fees. Homebuyers receive this form three days before closing, and once they sign it, a three-day waiting period begins before the mortgage loan documents can be signed.
Ready To Seal the Deal?
Here at Linda Craft & Team, we want your home buying experience to be as easy and enjoyable as possible. As a prospective buyer, you shouldn’t have to worry about understanding all the fine print—let our team of top Triangle area Realtors do that for you. We have all the resources necessary to help you land your dream home in the Triangle area today! Contact our team or call us at 919-235-0007 with any questions you may have about buying or selling your home.