Be an Informed Buyer – Know Your Closing Costs

According to a recent survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.
After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17 percent of homebuyers were surprised that closing costs were required at all, while another 35 percent found the fees to be higher than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com recently gathered closing cost data from lenders in every state and Washington, D.C. to be able to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20 percent down payment.
Graphic displaying average closing costs by state
 According to Freddie Mac, “Closing costs are typically between 2 and 5 percent of your purchase price.”
Bottom Line
Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Being thoroughly informed from the beginning will help make your real estate transaction a smoother and more pleasant experience.

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