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% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were 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% down payment.

Keep in mind that if you are in the market for a home above this price range. your costs could be significantly more. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Speak with your real estate agent and they can refer you to a reputable lender early to determine how much you can afford to buy and what you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

If you would like to get together and discuss your home buying plans, I can recommend several highly professional lenders to give you the best options when seeking home financing. Closing cost for buyers should never be a surprise and if you have a good agent and loan officer you wont be. One thing that is not included in buyer closing costs is a fee for a REALTOR to represent you. VIP Buyer Representation is available at no cost to you, the home buyer.

Learn more by requesting an appointment time today. Learn About the VIP BUYER PROGRAM

Source: Housing Market & Real Estate News