Builders Realty Network
Susan McKeon, Builders Realty NetworkPhone: (508) 615-6697
Email: [email protected]

Here's what to expect for the average closing costs for buyer hopefuls

by Susan McKeon 05/09/2022

Budgeting for buying a home can seem daunting, but one of the best ways to make it easier is to figure out the average closing costs for buyer hopefuls. There are various service charges bundled together to make up closing costs, and some can vary significantly based on location and specific property.

Here are some of the most common closing costs you can prepare for:

Loan origination fee

Mortgage lenders charge an origination fee for creating the loan. This closing cost varies from one mortgage provider to another, but usually ends up being equal to about 1% of the total amount of the loan. While this is considered a closing cost, some lenders require this fee up front for the loan estimate.

Home inspection fee

Home inspection fees typically cost a few hundred dollars. They cover the optional – but important – official property inspection by a licensed professional before closing.

While technically not always required by lenders or buyers, home inspections can help you identify major issues or repair needs before buying a home.

Appraisal fees

Appraisal fees are paid to the professional home appraiser to determine the value of the property. These fees often range from $300 to $400, though the cost can vary depending on location and the size of the home.

Title search

Before a buyer can take over the title for the new home, it has to be examined carefully for any evidence of prior issues. Examples of issues a title search looks for include liens, unpaid property taxes or unfulfilled contingencies. Typically, the fee for a title search will cost around $400 to $500.

These are not all the possible closing costs associated with buying a home. However, they are some of the most common, and the easiest, to budget for. Remember these fees when planning a budget to include average closing costs.

About the Author
Author

Susan McKeon

Susan McKeon is the New Construction Sales Coordinator for Builders Realty Network. Tom Revane, Owner/Broker/Builder of Builders Realty Network has developed a unique New Construction Program designed to take you through the entire building process from banking needs to finding your desired property and building your new home all within your budget. Susan McKeon and Revane Builders, LLC have teamed up and put together a portfolio of home plans ranging from small ranches to large colonials. We have many lots to choose from throughout Central Mass already listed with to-be-built homes on them. If you have an existing lot or prefer another lot that we do not have listed, Sue and Revane Builders, LLC will be more than happy to work with you using our New Construction Program. If you have an existing home to sell prior to construction, Sue can provide a market analysis and assist you in the sale of your current home.