Are you ready to buy or sell a home, but unsure how much you’ll need to save for the closing costs on a house? Closing costs is one of those terms you hear a lot in reference to buying and selling houses, but it’s not really clear what those costs are. So what exactly are closing costs and what do they entail? Here’s everything you need to know.
What Is Included in Closing Costs
Closing costs are the fees that you pay when you close on (or complete the purchase of) a house. The seller might also pay some closing costs. These costs include fees that the professionals helping you buy or sell your home charge for their services in helping you complete the real estate transaction.
Each loan closing will be different, but here are some of the most common fees included in closing costs:
- Title fees
- Credit report
- Prior loan pay-off fees
- Recording fees
- Loan origination and processing fees
- Realtor fees
These costs can really add up, but they shouldn’t be a surprise on closing day. Your mortgage lender is required to send you a closing disclosure form 3 days after they receive your mortgage application, and an updated form 3 days before you close with an estimated list of closing costs. You can always call your lender with questions about these costs, and they’ll be explained to you in detail on closing day.
How Much Are Closing Costs on a House?
Though both buyers and sellers pay some closing costs, buyers pay the bulk of them. These costs typically amount to 3-6% of the home’s purchase price. So for a $350,000 house, you could expect to pay between $10,500 and $21,000 in closing costs.
In 2019, homebuyers across the United States paid an average of $5,749 in closing costs, according to a recent study by ClosingCorp. Buyers in Washington DC paid the highest closing costs, averaging $25,800 while those in Indiana paid less than $2,000. As you can see, the exact amount of closing costs you will pay depends heavily on where you live. Your lender and the type of mortgage you get will also factor into the costs.
Save on Closing Costs With HoneyHomb
Closing costs on a house can get expensive, but don’t let that stop you from buying a home that’s perfect for you. HoneyHomb is here to help make buying and selling homes easier, and we’re starting by giving you a break on the closing costs. Buy with us today and save up to $2,000! You can bring your own lender or use one of ours, and we’ll help you find a home, set up the showing, put in the offer, and make negotiations.
With no need for a realtor, you’ll save thousands on commissions and fees. You’ll have your keys in no time and your wallet will be happier than ever. What are you waiting for? Buy a home with HoneyHomb today! We serve Sandy, Salt Lake City, and the Greater Wasatch Front.