Monday, July 6, 2020 / by Jessica Nager
Buying a house is very exciting, but has anyone ever shown you what the 4 closing costs associated with buying a home are?
Buying a house without knowing your budget is sort of like painting your house without knowing the color. When you know your budget, you’ll be better prepared and there will inevitably be fewer surprises.
Hi, I’m Ryan Nager with the Ryan Nager Group and in this video, I’m going to walk you through the 4 buyer closing costs associated with buying a home and what you can expect. Knowing these numbers will help you make wise financial decisions and the truth is... good deals go fast. When you know your numbers, you can't take advantage of good deals without hesitation.
1. Money For Your Down Payment This isn’t so much as cost... as you’re putting it towards the house but it does leave your bank account. Generally, you can see down payments anywhere from 3-20% of the purchase price.
2. Title Costs When you close on a home, you will go to a third-party location, this title company is responsible for doing a background check on the property and controlling funds.
3. Lender Fees You’ll need to pay the bank to do the loan for you! The lenders we were with usually cost between $2,000-$3,000.
When I prepare my client about closing costs, I usually advise them to anticipate, total closing costs will be around $5,000-$7,000. And remember, every situation is different, so it is not always guaranteed that sellers will be paying for most or any of these closing costs. When you have a good realtor on your side they can negotiate and try and cut as many costs as possible!
4. Home Inspection Fee A home inspection is absolutely necessary and you can usually expect these fees to be anywhere from $350-$450 depending on the type of home.
While there are many other miscellaneous fees, these that we have gone over are the major ones. Knowing these numbers upfront will allow you to plan for your total amount needed during your closing.
I hope this video helped you better understand the costs associated with buying a home. Please feel free to reach out to me with any questions! I’m Ryan Nager with The Ryan Nager Group at Stunning Home Realty.