DLC BLOG
Don’t Forget the Closing Costs When You Purchase a Home
Don’t Forget the Closing Costs When You Purchase a HomeThe purchase price you negotiate when buying or selling a home is just one part of the total cost for buying a home. In addition to the purchase price there are several other fees – known as closing costs – all of which you need to factor in to your purchase price.
Closing costs tend to be hidden costs when buying a home. It’s not a set number, but a compilation of various administrative, legal fees and other one-time expenses associated with the purchase of a home that are due on the completion date.
These costs can add up, so you’ll need to factor these costs into your cash-on-hand budget.
Many first-time home buyers under estimate the amount of cash they will need for closing costs. Typically, you’ll want to budget between 1.5% and 4% of the purchase price of a resale home to cover closing costs.