How Much do You need for Closing Costs?

Many clients ask me how much they will need to get into the home of their dreams. This can be a little tricky depending on what type of financing you choose to go with though the following will give you a good idea of what to prepare for: (The following is a "general” guideline and should NOT be used to replace what your individual lender may quote. It’s always best to speak with your lender to determine your actual costs)

Take a full year of taxes on the property + A full year of Homeowner’s Insurance+ an estimated $3000 for title, underwriting and processing and finally add in the down payment percentage dollar amount.

This should get you fairly close to what your out of pocket costs will be. Your EMD (Earnest Money Deposit) will be factored into the amount above and taken off the final number. The cost of your private inspection, should you choose to have one done, is usually not factored into this amount, though many lenders do factor in the the cost of your appraisal to it.

Hope this helps as you think about your next move and as always, I’m hear to answer any other questions you may have.

P.S. The taxes above can vary if you close in June or November as the title company likely with hold 1.5 times the annual tax to be on the safe side.