How To's

Planning Ahead

By May 19, 2021 No Comments
Planning Ahead, The Importance of Closing Costs, rooted, rooted&co, real estate, utah, salt lake city,

Planning ahead for your homebuying expenses is very important when buying a home. Many homebuyers feel the down payment is the main payment to budget for, however, the required closing costs are just as important.

What Are Closing Costs?
According to Trulia, “When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.”

For example, someone buying a $300k home could have anywhere between $6k to $15k in closing costs. If you want a home that costs more, your closing costs could be more substantial.

Trulia gives more great advice, explaining: “There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time. The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll get this form about three days before closing since, once you (the borrower) sign it, there’s a three-day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your real estate agent is a great resource for getting you all the answers you need.”

As more buyers are finding themselves competing in bidding wars and home prices are rising, it’s important to make sure your plan includes the proper budgeting for closing costs. To be sure you have everything you need to land your dream home, work with your lender and a local real estate professional as soon as possible.
Contact Rooted&Co today if you are looking to buy or sell your home. FIND ANSWERS | DEVELOP CONNECTIONS | GROW WEALTH. Call (801)449-0602 or click here to learn more about us.
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