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Buyers! Don't be surprised by closing cost

By Marla Yost

Real Estate Agent with The Yost Team- Keller Williams Realty

November 30, 2018 01:03 PM

Buyers! Don't be surprised by closing cost.

Many home buyers think that saving for their own down payment is enough to buy the house of their dreams, but what about the closing cost that are required to obtain a mortgage?

By law, a homeowner will receive a loan estimate from their lender 3 days after submitting their loan application and they should receive a closing disclosure 3 days before the scheduled closing on their home. The closing disclosure includes final details about the loan and the closing cost.

Many buyers ask: What are closing cost?

Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.