{"id":7720,"date":"2022-03-15T10:00:56","date_gmt":"2022-03-15T10:00:56","guid":{"rendered":"https:\/\/thezakariagroup.com\/dont-get-caught-off-guard-by-closing-costs\/"},"modified":"2022-03-15T10:00:56","modified_gmt":"2022-03-15T10:00:56","slug":"dont-get-caught-off-guard-by-closing-costs","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/dont-get-caught-off-guard-by-closing-costs\/","title":{"rendered":"Don\u2019t Get Caught Off Guard by Closing Costs"},"content":{"rendered":"
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As a homebuyer, it\u2019s important to plan and budget for the expenses you\u2019ll encounter when you purchase a home. While most people understand the need to save for a down payment<\/a>, a recent survey<\/a> found 41% of homebuyers were surprised by their closing costs. Here\u2019s some information to help you get started so you\u2019re not caught off guard when it\u2019s time to close on your home.<\/span><\/p>\n One possible reason some people are surprised by closing costs may be because they don\u2019t know what they are or what they cover. According to U.S. News and World Report<\/em><\/a>:<\/p>\n \u201cClosing costs encompass a variety of expenses above your property\u2019s purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments and homeowners insurance.\u201d<\/em><\/p>\n<\/blockquote>\n In other words, your closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction. According to Freddie Mac<\/em><\/a>, while they can vary by location and situation, closing costs typically include:<\/p>\n Understanding what closing costs include is important, but knowing what you\u2019ll need to budget to cover them is critical to achieving your homebuying goals<\/a>. According to the Freddie Mac <\/em>article mentioned above,<\/em> the costs to close are typically between 2% and 5% of the total purchase price of your home. With that in mind, here\u2019s how you can get an idea of what you\u2019ll need to cover your closing costs.<\/p>\n Let\u2019s say you find a home you want to purchase for the median price<\/a> of $350,300. Based on the 2-5% Freddie Mac<\/em> estimate, your closing fees could be between roughly $7,000 and $17,500.<\/p>\n Keep in mind, if you\u2019re in the market for a home above or below this price range, your closing costs will be higher or lower.<\/p>\nWhat Are Closing Costs?<\/strong><\/h4>\n
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How Much Will You Need To Budget for Closing Costs?<\/strong><\/h4>\n
What\u2019s the Best Way To Make Sure You\u2019re Prepared at Closing Time?<\/strong><\/h4>\n