Great little article from our friends over at KCM explaining closing cost.[](https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240321/20240325-What-Every-Homebuyer-Should-Know-About-Closing-Costs.png) Before making the decision to [buy](https://www.keepingcurrentmatters.com/2024/02/20/strategic-tips-for-buying-your-first-home/) a home, it’s important to plan for all the costs you’ll be responsible for. While you’re busy saving for the [down payment](https://www.keepingcurrentmatters.com/2024/02/26/the-truth-about-down-payments/), don’t forget you’ll want to prep for closing costs too. Here’s some helpful information on what those costs are and how much you should budget for them. #### **What Are Closing Costs?** A recent article from _Bankrate_ [explains](https://www.bankrate.com/mortgages/understanding-the-closing-process/): > _“_**_Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome_** _. . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”_ Simply put, your closing costs are the additional fees and payments you have to make at closing. According to [_Freddie Mac_](https://myhome.freddiemac.com/buying/understanding-costs), while they can vary by location and situation, closing costs typically include: - Government recording costs
- Appraisal fees
- Credit report fees
- Lender origination fees
- Title services
- Tax service fees
- Survey fees
- Attorney fees
- Underwriting Fees #### **How Much Are Closing Costs?** According to the same _Freddie Mac_ [article](https://myhome.freddiemac.com/buying/understanding-costs) mentioned above, they’re typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to budget. Let’s say you find a home you want to purchase at today’s [median](https://www.nar.realtor/newsroom/existing-home-sales-vaulted-9-5-in-february-largest-monthly-increase-in-a-year) price of $384,500. Based on the 2-5% _Freddie Mac_ estimate, your closing fees could be between roughly $7,690 and $19,225. But keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower. #### **Make Sure You’re Prepared To Close** _Freddie Mac_ provides great advice for homebuyers, [saying](https://myhome.freddiemac.com/buying/understanding-costs): > _“As you start your homebuying journey,_ **_take the time to get a sense of all costs involved_** _– from your down payment to closing costs.”_ The best way to do that is by partnering with a team of trusted real estate professionals. That gives you a group of experts to help you understand how much you’ll need to save and what you’ll want to be prepped for. It also means you have go-to resources for any questions that pop up along the way. ### Bottom Line Planning for the fees and payments you’ll need to cover when you’re closing on your [home](https://www.keepingcurrentmatters.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/) is important. Partnering with a local real estate professional can give you the guidance and confidence you need throughout the process. Call Chris Simpson today and let me help guide you through the process. 231-215-7229 * * * Chris Simpson
Nexes Realty Inc.
880 W. Broadway Ave
Muskegon, MI 49441 * * * ### Discover more from Muskegon Real Estate Agent, Chris Simpson,Homes For Sale, Muskegon Homes,Muskegon House For Sale, Muskegon Real Estate, West Michigan Real Estate Agent, Muskegon Realtor Subscribe to get the latest posts sent to your email. Type your email… Subscribe ### Share this: - [X](https://chrissimpsonwestmichiganrealestate.com/2024/04/02/what-every-homebuyer-should-know-about-closing-costs/?share=twitter&nb=1)
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