Understanding Closing Costs

So, you stalked house hunting websites, you went to open houses, you flooded your real estate agent’s email, you got approved for a mortgage, and finally, you found a house! However, that is not the last step of the process. To sign loan documents and to transfer over homeownership, you must handle the closing costs.

Closing costs are the fees and charges on top of the price of your new property. Closing costs must be disclosed in advance by law to buyers and sellers. The terms of the closing costs must be agreed upon between the seller and buyer before a real estate transaction can be completed.

Typical closing costs range from 2-5% of the home’s purchase price. These closing fees depend on your state, loan type, and mortgage lender. Here are some common fees with closing costs to look out for:

  • Application Fees
  • Attorney Fee
  • Credit Report Fee
  • Flood Determination and Monitoring Fee
  • Homeowner’s Insurance
  • Lender’s title insurance
  • Lead-based paint inspection
  • Pest inspection
  • Property Tax
  • Real Estate commission
  • Underwriting Fees

While these closing costs are unavoidable, Bridge knows that this price tag can be hefty and is here to help. Open a ConnectHOME: with Bridge where you will plan to save up to at least $1000 to put towards your down payment and Bridge will credit you up to $1000 towards your closing costs. Restrictions, terms, and conditions apply. Get started today!

Sources:

https://www.homeclosing101.org/the-closing-process/closing-costs-explained/

https://www.nerdwallet.com/article/mortgages/closing-costs-mortgage-fees-explained