Surprised by Home Closing Costs?

According to a recent survey by ClosingCorp of 1,000 first-time and repeat home buyers, over half were surprised by the closing costs required to get their mortgage.

The survey found 17% of home buyers were surprised closing costs were required at all, while another 35% were shocked the fees were more than expected.

“Home buyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com recently gathered closing cost data – the map below shows average closing costs on a $200,000 mortgage with a 20% down payment.

If you are in the market for a home above this price range. your costs could be significantly more. According to Freddie Mac, “Closing costs are typically between 2 and 5% of your purchase price.”

Real Estate Bottom Line

Talk with your lender early in the loan approval process to learn what your closing costs will be. Budgeting for closing costs will help make for a smooth real estate transaction.