Ask the Agent: What are Closing Costs?

Closing cost

What are closing costs, and how much will they cost me?

You’ve finally found your dream home and budgeted what you think you’ll need for expenses. But some first-time homebuyers forget that closing costs are part of the deal.

Closing costs are expenses outside of your mortgage that you’ll need to pay before you pick up the keys. Here’s a breakdown:

Appraisal – this is required for conventional mortgages and will typically run between $150 to $500.

Title Insurance – this insurance protects against problems that may arise with your title and can cost $350 and up.

Other costs can include title search fees, attorney fees, government recording fees, hazard insurance and home inspection fees. Be sure to ask your mortgage company early on in the process for a ball park estimate on what your closing costs will look like. If you’re considering purchasing a home in Orlando-Florida, NY-Metro, or Northern Virginia area, feel free to reach out to our knowledgeable Guidance Realty Homes Agents for more information on these costs plus ask about the $350 credit towards your appraisal cost when using our affiliated mortgage company.

 

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