Over Half of All Buyers Are Surprised by Closing Costs

Posted by Cindy Allen - Buyer's Agent on Wednesday, March 8th, 2017 at 4:23pm

How much does it cost to buy a home in Keller?

Over Half of All Buyers Are Surprised by 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.  There's no reason this should happen.  EVERY good real estate agent should be able to figure your numbers on the fly.  And if they haven't sat you down for that discussion you need to find out why. 

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.

What do I have to pay to get into a house

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 lender and agent early and often to determine how much 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.  Just starting to look and not had the Homebuyers 101 talk with an agent yet?  Give me a call.  I can make it easy. 

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