5-Point-5
5 Things You Should Know About Closing Costs
Your down payment isn't the only money you'll need when buying a home. Understanding the factors early can help you plan ahead and feel more prepared for closing.
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Your down payment isn't the only money you'll need when buying a home. Here are 5 things to know about closing costs.
1. They’re More Than One Fee
Closing costs are made up of several expenses associated with getting your loan and completing the purchase, rather than one single charge.
2. They Include More Than Lender Fees
Your total can include lender fees, title services, appraisal costs, recording fees, prepaid expenses, and other third-party charges.
3. Seller Concessions May Help
Depending on your loan program and purchase agreement, the seller may be able to contribute toward some of your allowable closing costs.
4. Lender Credits Are Another Option
You may be able to accept a slightly higher interest rate in exchange for a lender credit that helps reduce the amount you need at closing.
5. Know Your Numbers Early
Reviewing your estimated closing costs early gives you time to plan for the total amount you'll need, not just your down payment.
Closing costs don't have to be a surprise. Understanding them early can help you plan ahead and feel more prepared for closing.