June 7, 2023
By Isabel Guzman, Realtor®
Closing costs: What exactly are they and how much should you budget for?
If you are planning on buying a home this year, it is important to plan for any fees or payments you will need to pay at the closing of the transaction, otherwise known as closing costs.
Hi, I am Isabel Guzman Broker Associate and Realtor with EXP Realty.
Buying a home can be a very exciting time for you, so it is best
practice to know what costs you will be responsible for at the end of the transaction.
This way there are no surprises when you go to sign the final documents. According to Bank Rate and I quote, “Closing costs are the fees and expenses you must pay before becoming the legal owner of a house. Closing costs vary depending on the purchase price of the home and how it’s being financed.” So, what are some closing costs as a buyer you will need to pay?
Typically in a transaction, this can be costs for appraisal, credit reports, lender origination fees, title and underwriting, and notary fees. Closing Costs usually are 2-5% of the total purchase price of the home but can vary depending on the lender. So for example, if you are purchasing a home for $750,000, your closing costs could be around $15,000.
The good news is everything is negotiable and you may be able to get a credit from the seller to offset some of the costs. That
is why it is important to work with an experienced real estate agent who can negotiate the best terms for you.
If you would like more information on current market data and the available inventory in the area, reach out to my team and I so we can help you with your search and write the best offer for your next home. I'm Isabel with the Colibri Group, bringing you home.
GRI, EPRO, B.A, RENE
301 Main Plaza #214
New Braunfels, TX 78130
Phone: (830) 832-5589
Isabel Guzman is a licensed Broker and Real Estate Agent in the State of Texas and is a leading authority on Central Texas area real estate.
Her love for the communities she lives and works in are why we do what we do. Get to know her and see for yourself her passion and commitment to her profession and her community.
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