What Are Closing Costs?
Closing costs can be confusing for new and experienced home buyers alike. To help avoid surprises, we'll explain what some of the most common closing costs are and when you'll need to pay them.
Understanding closing costs
In order to close your loan, you'll need to pay a number of service-related costs and fees. While some of these closing costs are paid to your lender, most of them go to third-party providers for services like your appraisal, credit report and insurance.
How much are closing costs?
Closing costs usually equal about 1 to 4% of your home's value. For example, if your home costs $250,000, your closing costs could range from $2,500 to $10,000. The range depends on many factors, including loan-specific fees and your geographic location.
Who pays closing costs?
More often than not, it's the buyer who pays the closing costs. That said, some sellers may be willing to cover part of the closing costs. One of our Home Lending Officers would be happy to help you understand your options.
Did you know?
If you don't have cash on hand to cover closing costs, you might be able to roll them into your mortgage. To see if this is an option for you, speak with one of our Home Lending Officers.