According to a recent survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.
After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.
“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”
Bankrate.com recently gathered closing cost data from lenders in every state and Washington, D.C. to be able to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.
Keep in mind that if you are in the market for a home above this price range. your costs could be significantly more. According to Freddie Mac,
“Closing costs are typically between 2 and 5% of your purchase price.”
Bottom LineSpeak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.
Article by Keeping Current Matters
Heather Thurber is a Sonoma County native with a strong love for and knowledge of the local area. Running her family business for years, Paperbacks Unlimited, has given her extensive experience that she now brings to the real estate industry. She is highly skilled at working one-on-one with clients and will guide you through every step of the process, helping to make your path home as smooth and stress free as possible. A home purchase is often the largest purchase you will make in your life and Heather is 100% committed to providing excellent service and supporting you to make your best real estate decisions with confidence and clarity.