No one likes to be caught off guard with unexpected fees. Have you ever been in the middle of an online purchase and then realized you have to come up with another $7.50 for shipping fees? Those extra fees may cause you to reevaluate your purchase. Suddenly that online bargain blew your budget.
Contract to closing table
In home buying, saving for a down payment gets a lot of attention—it’s the number one obstacle to homeownership—but closing costs can be just as steep. So how much do you really need to get from a contract to the closing table?
It all depends on your loan so talk to your lender about what to expect and ask for an upfront estimate. Application fees, appraisal fees, property taxes, pre-paid interest and insurance fees may be included.
Homeownership programs may help cover costs
The good news is that there are homeownership programs that can help cover some or all of these costs. With a program, you may be able to fund both your down payment and closing costs, or even a portion of your closing costs. Stay in control of your home buying budget by doing your research early and finding out if you may qualify of a homeownership program.
For more details on what types of closings costs you might be expected to pay, check out the helpful infographic below, brought to you by our friends at Bank of America.