Don’t forget about closing costs when buying a home

A lot of buyers save for the down payment and don’t realize there are other expenses due at closing.

These can include the appraisal, title fees, attorney fees, lender fees, homeowners insurance, property taxes and money placed into your escrow account.

Closing costs are often around 2% to 5% of the purchase price, but every situation is different depending on the property, location and loan program.

One thing that confuses a lot of buyers is that closing costs and cash to close aren’t the same thing. Your total cash to close can include your down payment, closing costs and prepaid expenses, minus any deposits or credits you’ve already received.

My advice is to ask your lender for an estimate of the total amount you’ll need early in the process. That way, you’re not caught off guard a few days before closing.

Were there any closing costs that surprised you when you bought your home?