One of the most overlooked aspects when budgeting for a mortgage are the closing costs, which includes the fees that are incurred when the title to the property is transferred to you.
Closing costs are estimated to be between 1.5 percent to 3 percent of your total mortgage.
Some of the more common closing costs include:
- Legal fees ($1200-$1500)
- Appraisal fees ($250-$600)
- Property tax adjustment (please confirm this amount with your Lawyer)
- Interest adjustment (please confirm this amount with your Lawyer)
- Title insurance ($200-$300)
- Fire insurance ($500-$1500)
- Home Inspection ($300-$400)
- Real Property Report (you may be able to obtain a copy from the previous home owners)
- Utility connection charges
Although the amount of closing costs depends on your specific situation, you should always be sure to budget ahead of time to avoid any surprises once your mortgage is finalized. To discuss closing costs and budgeting for your mortgage in more detail, contact us today.
