Closing costs are an essential aspect of the home-buying process that buyers should be prepared for. These costs typically range from 2% to 5% of the home’s purchase price and can include fees for the loan, title insurance, appraisal, and attorney services.
It’s crucial to budget for these expenses in addition to your down payment. Your lender is required to provide a Loan Estimate that outlines estimated closing costs, allowing you to compare offers from different lenders.
Understanding these costs can help you avoid surprises at closing and ensure you are financially prepared for your new home.