Saving for a down payment is a key step in the home buying process, and it’s not the only piece you need to include in your budget. Another factor that’s important to plan for is the closing costs required to obtain a mortgage.
What are closing costs?
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.
Keep in mind closing costs are typically between 2% and 5% of your purchase price.