How Much are Closing Costs When Buying a Home?

randywhill

Oct 1

Most people realize they will need to save some pretty good money for a down payment when they buy a home. Unfortunately, many do not expect the closing costs that also come with a home purchase.

Closing costs are those costs in addition to the purchase price. They can include lender fees, title insurance, government processing fees, up front tax payments and homeowners insurance. There may also be appraisal fees, credit report fees and underwriting fees.

In a nutshell, you can expect to pay between 2% and 5% in closing costs. Where I work, the number is closer to 2% but you need to check what is typical in your state.

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