Hey there, first-time homebuyer!
I wanted to talk to you today about something that’s often overlooked when budgeting for a new home purchase: closing costs.
Closing costs are the fees and expenses you’ll need to pay at the close of escrow, typically within a few days of the home sale transaction. These costs can include things like appraisal fees, title insurance, attorney fees, and more.
It’s important to factor in these costs when you’re budgeting for your new home purchase. Many first-time homebuyers focus on saving for a down payment and forget to take into account the additional expenses associated with closing.
So, how do you estimate your closing costs? One way is to ask your lender for a Loan Estimate, which will break down the estimated costs associated with your mortgage. You can also ask your real estate agent for an estimate of the other expenses you’ll need to pay, such as title fees and inspection costs.
It’s also a good idea to set aside some money for unexpected expenses that may arise during the home buying process. For example, if an inspection reveals a problem with the home, you may need to pay for repairs before the sale can go through.
All in all, remember to factor in closing costs when budgeting for your home purchase. By doing so, you’ll have a more accurate idea of how much money you’ll need to have on hand, which can help you avoid any surprises or delays during the home buying process.
Good luck with your search, and happy house hunting!
