What are closing costs and how do they work?

What are closing costs and how do they work?

Closing costs are fees associated with finalizing a real estate transaction. They typically include loan origination fees, title insurance, appraisal fees, and more.

How much can I expect to pay in closing costs?

Closing costs usually range from 2% to 5% of the home's purchase price, depending on various factors like location and lender.

Are there any ways to reduce closing costs?

Yes, you can negotiate with the seller to cover some costs, shop around for better rates, or ask your lender about no-closing-cost loans.

What happens if I can't pay the closing costs?

If you can't pay the closing costs, you may need to delay the purchase or explore financing options, but it's crucial to discuss this with your lender.