What are closing cost? Closing cost are fees and expenses associated with the transfer of ownership. These fees and expenses vary depending on the purchase price of the property, how the property is purchased, and the location of the property. Typical fees and expenses you'll see are recording cost, appraisal fees, lender origination fees, title services, tax fees, and so on.
How much are closing cost fees?
Creating a budget is key to know how much you can afford and not be surprised by any of these fees or expenses. According to Freddie Mac you can expect anywhere from 2-5% of the total purchase price of the property. So If you final purchase price is $100,000 you can expect the closing cost to be between $2,000 and $5,000. Keep in mind those numbers change depending on the purchase price and several other variables.
Knowing is half the battle and being prepared is a large supporting factor. If you don't know ask questions and you'll get the knowledge you're after. That's why working with a trusted real estate agent and lender is one of the important aspects in being a home.