An Introduction To Closing Costs

closing costs

If you’re a potential first time homebuyer, you may be confused about those mysterious closing costs — the expense that means that when you think you’ve finally saved up enough for a down payment, you really haven’t. Closing costs can add 2% to 5% to the purchase price of your home, which is especially painful if you live somewhere with high housing costs.

So what are closing costs? Here’s a rundown. Keep in mind that this is just a sampling of fees you may need to pay. Depending on your location, lender, and other factors, you may encounter a lesser or greater list of fees.

Credit report: For around $50, the lender will check at least two of the major credit r

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8 Responses to An Introduction To Closing Costs

  1. vsjhoc says:

    Which are the closing costs that you should NOT be charged for when you refinance?

  2. pfadvice says:

    article on this question in the works :)

  3. Jay Thompson says:

    Great post Amy. Thanks for submitting it to the Carnival of Real Estate and congrats “making the cut”.

    I don’t know why the CoRE post didn’t ping this, and a few others…

    http://www.phoenixrealestateguy.com/carnival-of-real-estate-37-fore/314

  4. Pingback: Great Article on Closing Cost Definitions

  5. Zach says:

    Can these costs be added to the mortgage amount?

  6. janette says:

    when you are paying cash for your house. what will your (closing) costs actually be? i wont have the costs of the lender.. so besides attorney fees, what is there for me to pay?

  7. Benrice says:

    if you’re paying all cash for a property expect to pay attorney fees, you may have to give credit to the seller for water, gas, electric,sewer charges-if he’s paid these items upfront. try and find a sample hud statement on line and exclude the lender’s costs from the statement and that should help you see what you’ll be expected to pay at closing.

  8. Blue44 says:

    What of the issue of financing closing costs—what are the pros and cons?

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