Many homebuyers think that saving for their down payment is enough to buy the house of their dreams in Bulverde|Spring Branch, TX, but what about the closing costs that are required to obtain a mortgage?
By law, a homebuyer will receive a loan estimatefrom their lender 3 days after submitting their loan application and they should receive a closing disclosure3 days before the scheduled closing on their home. The closing disclosure includes final details about the loan and the closing costs.
But what are closing costs anyway?
According to Trulia:
“Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.)”
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