What are closing costs and how much are they?

Dated: June 3 2021

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What are closing costs and how much are they? 


It's important to have money saved for a down payment, anywhere from 3%-20%+ when you are buying a home...the more money that you have to "put down" on a home, the less money that you have to borrow means less money to set aside for closing costs...let's break that down to see what that means...

"Closing costs" are typically a number of fees that can range from 2-5% of the total cost of your home - these fees can include title insurance, origination fees, underwriting fees, documentation preparation fees and more...

An example is the $300,000 home that our buyer is purchasing, the "closing costs" that they are expected to pay out of pocket (on top of their down payment) is 3%...that's $9000 worth of closing costs...and they are putting 20% down ($60,000)...that's a lot of cash that some first time home buyers are struggling to come up with!

Next week we will dive into the different types of loans that are available options for buyers and what makes each one unique. 

If you have any questions regarding closing costs or anything else - please let us know! We'd love to hear from you!

 

Call Mike at 612-685-0927 or Becki at 952-220-5872
Info@MeyerRealEstateTeam.com
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Meyer Real Estate Team

With Mike's background in construction/real estate and Becki's marketing experience in the physical therapy world, the two joined forces to create the ultimate team, both in real estate and in their f....

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