I was reading today that a survey showed over half of all home buyers, both first time buyers and repeat home buyers, are surprised by how much the mortgage section of the closing costs were. The detailed results were that 17% were surprised while another 35% were stunned by how much higher the fees were than they expected them to be.
Now this is just on the mortgage costs side at the closing cost. It does not reflect the other areas such as legal fees, title company fees, title insurance prepaid taxes and more. Fannie Mae states that typically, closing costs are between 2% and 5% of the purchase price.
So what steps should you take to avoid being surprised when you get to the closing table? Speak with your lending professional, your Realtor and your attorney. Between them, you should receive enough guidance about what your total closing costs will be so that you don’t get surprised and possibly be short of cash when you get to the closing table.