What are Closing Costs?

Buying a home in 2022. What is it gonna take?

As always, we're talking about how important it is that you know about all aspects of buying a home.

Hi, everyone, I'm Stephanie Martenzi, Super Mom, Super Agent with Southland Properties.

I know you're wondering,

What are closing costs?

And who pays for them?

I know that oftentimes people are preparing to buy a home, but really, they're not that prepared. They're completely surprised when they did not budget for potentially thousands of dollars for closing costs.

So what are closing costs?

They're the various fees that buyers and sellers pay at the close of escrow. These fees can include, but are not limited to, escrow and title fees, loan origination fees, transfer tax, prepaid homeowner's fees, et cetera. And they're typically somewhere around 2.5% of the purchase price.

For instance, if you buy a home for $500,000, you should have approximately $12,000 set aside for these types of closing costs in addition to the down payment.

So whether you're looking to buy or sell, don't be surprised that these fees come up and they need to be paid at closing.

Don't worry, though.

Great lenders and realtors will make sure that you are fully prepared ahead of time and that you know your numbers. If you'd like a more detailed list of the typical fees and how much each one of these are, please reach out anytime, I'm happy to help.

And again, this is Stephanie Martenzi, Super Mom, Super Agent with Southland Properties, here to help you have a fun, empowered and informed real estate experience by guiding you every step of the way. If you see me out in the community, make sure to say hi.