In our last 'What to Know' series, we'll cover closing costs and their importance when buying a home.
Closing costs are probably the most forgotten costs when it comes to preparing to buy a home. Buyers tend to be so focused on budgeting for a down payment, that they bypass closing costs. It’s important to be fully prepared—and that includes budgeting for closing costs by the time of purchase.
What are closing costs? Closing costs are the fees associated with your home purchase that are paid at the closing of a real estate transaction, whether it’s buying a home or refinancing it. In other words, they occur when the title of the property is transferred from the seller to the buyer.
What fees are included in the closing cost? In a nutshell, closing costs are legal and transaction fees associated with the purchase of a home. You can expect the following fees: application fee, appraisal, attorney fee, closing fee, credit report charges, title policy, prepaid interest, survey fee, property tax, recording fees, etc.
How much can you expect to pay in closing costs? The average home buyer can expect to pay between 3% to 4% of the house’s sales price in closing costs.
For example, if you are looking to purchase a $200,000 home, your closing costs would typically range from $6,000 to $8,000.
The good news is, when you purchase a home with Camden Homes, we cover up to $6,500 of closing costs when you use one of our preferred lenders. We have available homes for purchase or lease across North and East Texas. Contact us today to get in touch with one of our agents.