When you’re preparing to buy a home, one of the most important financial considerations is closing costs. While many focus on the down payment and monthly mortgage payments, closing costs can add a significant amount to your total expenses. Here’s a detailed look at what closing costs are, how much you can expect to pay, and what they include.
What Are Closing Costs?
Closing costs are fees and expenses associated with finalizing the purchase of a home. These costs are typically due at closing when the property title is transferred from the seller to the buyer. Closing costs can vary widely depending on various factors, including the location, type of loan, and the purchase price of the home.
Typical Range of Closing Costs
Closing costs generally range from 2% to 5% of the home’s purchase price. For example, if you are buying a home for $300,000, you might pay between $6,000 and $15,000 in closing costs.
