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What are Closing Costs?

Many buyers don’t realize the true costs involved in purchasing a home. It’s more than just making a down payment and signing on the dotted line.

Closing costs are generally 2% to 6% of your mortgage amount. This covers things like the home appraisal, legal fees, lender fees, homeowner association assessments, taxes, and the costs of pulling credit reports.

The exact amount of closing costs will depend on things like the type of mortgage you’re using, your credit score, the kind of home you’re buying, and where the home is located.

Your lender will provide you an itemized lists of closing costs before you close on the home.

“It will be disclosed in the very beginning,” said Miguel Mouriz, vice president of Central Florida for New American Funding. He is based in Orlando, Fla.

Miguel Mouriz NMLS #283155