Buying a home is about more than just the purchase price. There are additional costs you’ll incur when you buy a home, most of which are due at closing—and it’s important to be prepared (and to budget!) for those costs.
So, as a buyer, what closing costs can you expect to pay when you buy a home?
A recent video from realtor.com outlined fees buyers should be prepared to pay at closing, including:
- Lender fees. Your bank or mortgage broker will charge you a loan origination fee that you’ll have to pay at closing. If you purchase points to “buy down” your mortgage, you’ll also have to cover those costs.
- Escrow fees. Escrows are independent companies that complete the closing transaction. Not only are they responsible for ensuring the transaction is legally binding, but they also collect and distribute money from all parties involved (including the lender)—and charge fees for their services.
- Appraisal fees. Lenders need an appraisal to make sure the house is worth what the buyer has agreed to pay for it—and as the buyer, you’ll need to cover the fee for the appraisal.
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