FIRST TIME HOME BUYERS SERIES | WEEK TWELVE | Closing Costs

Closing costs can be a hidden hurdle in your home buying journey. Are you prepared for these often-overlooked expenses? Let's dive into a crucial aspect of homebuying – closing costs. 

Closing costs extend beyond your down payment and include various expenses associated with a new home purchase. Here's a breakdown of some common costs:

• Legal fees
  Working with a lawyer is essential for handling the legal aspects of your purchase and you can expect to spend between $1200 to $1500

• Title insurance  This protects against any issues with the property's title, such as existing liens or ownership disputes. The cost of title insurance can vary based on the purchase price of the property.

• Home insurance
  Mortgage lenders require you to have property insurance to protect against potential damages or losses. The cost of property insurance will depend on factors such as the property type, location, and coverage amount.

• Adjustments
  On closing day there may be adjustments for property taxes. You may be responsible to reimburse the seller if they have prepaid all or a portion of their property taxes.

Generally, lenders ask to show an additional 1.5-4% of the purchase price available to cover closing costs.