When you are buying a home there is something that needs to be taken care of as soon as possible. And that one thing is the closing cost. The closing costs usually consist of lender’s fees, and third party fees. Some of the things that affect the direct cost would be something like your down payment, and your mortgage lender rates. Even the type of home loan will affect it. You current credit score is also a leading factor.
- Closing costs can add between two percent and five percent for the borrower and six percent to 10 percent for the seller.
- Lender’s fees include loan application, document preparation, and other fees; third-party fees cover inspection and appraisal fees.
- At least three business days prior to the scheduled closing, the lender must provide a Closing Disclosure listing exact closing costs.
“Your particular closing costs depend on several factors, but generally fall into three categories: lender’s fees, third-party fees and prepaid items. Below is an overview of common closing costs.”