Don’t forget the closing costs\! Learn about what these costs are and how you can get them lowered.

I’m joined today by buyer specialist Brittany Dailey, who will be giving us an in-depth look at the closing costs involved in a home sale. To begin, let’s go over what closing costs are.

Many people think you only need money for a down payment, but there are many other fees involved. These are closing costs, which are the additional expenses associated with purchasing a home. Fortunately, most of the closing costs are prepaid, such as taxes and insurance. These prepaid amounts depend on your lender and your credit score, but they typically make up for three to six months’ worth of property tax and insurance.

Buyers are expected to pay the closing costs in a home sale, but a good agent can negotiate for the seller to pay some or all of these costs. If the costs were $5,000, for example, you could ask for that amount off the list price or for $5,000 in closing cost credit. This could save you around $30 on your monthly mortgage payment or reduce the amount you need to bring to the closing table.

“Even in a zero-down situation, there are still closing costs involved.”

Even in a zero-down situation, there are still closing costs involved. There are a few ways you can calculate these costs. Typically, closing costs will be about 1% to 2% of the purchase price. If you want a specific number, your lender should be able to find out exactly what you’d be paying in closing costs. Brittany likes to do this up front so buyers know precisely how much the total cost to close will be.

Different lenders have different closing costs. Lenders and their title companies charge different fees, and prepaid amounts also vary. Because of factors like these, it’s important to get a second opinion from your agent before choosing a lender. 

I’d like to thank Brittany for providing some insight into closing costs. If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you soon.