When you buy a home in Ellicott City, Columbia, Catonsville or elsewhere, one of the sums of money you’ll most likely have to come up with will go toward your closing costs.
But what are closing costs, and how much will you have to pay for them?
What Are Closing Costs?
Closing costs are fees you have to pay to your lender and to other parties in order to facilitate a real estate transaction. You may have to pay things like:
- Loan origination fees, which are processing charges from lenders
- Taxes on the money you’re borrowing
- A credit report fee
- A survey fee
- An underwriter fee, which pays the person who checks your creditworthiness
- A title search fee
- Attorney’s fees
- Home inspection fees
- Appraisal fees
This isn’t a complete list, though – your lender can provide you with one that includes everything.
Related: Mortgage basics for buyers
How Much Are Closing Costs?
You can expect to spend between 3 and 5 percent of a home’s sales price in closing costs. Naturally, that doesn’t apply if the seller picks up your costs or if you’re using something like a VA loan, in which there’s a cap on the amount your lender can charge you.
Closing costs can vary, too, because some of the things you have to pay for might be negotiable. Ask your lender if you can negotiate fees like lawyer fees, courier fees and others – you may be able to save a little cash that you can then apply to your down payment (or new furniture).
Related: What is a VA loan?
Are You Buying a Home in Ellicott City?
If you’re ready to buy a home for sale in Ellicott City, we can help you find the right one.
Call us at 410-465-5822 to tell us what you want from your next home or to schedule a tour in a home you’ve seen online.
Use these links to check out the hottest listings: