Many of us, when we think about buying a home, we think about the home’s initial purchase price and what our monthly payment would be. But there’s another piece to the puzzle that homebuyers should consider and that’s closing costs. So listen up to our instructional video! Because the last thing you want is to be surprised by some last minute fees.   



Closing Costs are the fees charged to facilitate your home purchase. They include things such as the loan origination fee, underwriter fee, appraisal fee, title company fees, courier fees, etc. And although there are a few exceptions, like the home inspector fee that is paid for at the time of service, they are almost always paid at the time of “closing” of a real estate transaction, or when the title of the property is transferred from seller to buyer. 

When all is said and done, you can expect to pay anywhere from 2% to 7% of the home’s purchase price in closing fees. The amount you end up being charged depends on your property’s location, condition, the type of loan you are applying for, and your lender. So it’s important to know what you’ll be responsible for and plan accordingly. 

The good news is that your lender should provide you with a loan estimate to help you budget for the additional costs. You should receive a loan estimate document, which includes what the closing costs will be on your home within three business days of submitting your completed loan application. Keep in mind that this is an estimate, so closer to closing day, when you receive your final closing disclosure, you should review the charges again and make sure you are fully aware of all services being charged.   

Closing costs can quickly add up to thousands of dollars, so is there any way to save a little cash? Actually, yes. 

If you find the fees too high on your loan estimate, you can try to negotiate with your lender or you can shop around for lenders will who are willing to offer you a loan with lower fees at closing. Some lenders even offer a “no closing cost mortgage”, but beware! You’ll find they also typically have higher interest rates. So instead of paying a one time lump fee, you’ll end up paying more monthly. 

Another way to save some money is to negotiate with the seller. Depending on the state of the market and the seller’s motivation to sell, the seller may agree to cover a portion or all of the closing costs. 

If you have additional questions about closing costs or financing options, give one of our BHURDinUtah agents a call or a text today. We’d be happy to recommend our trusted lending partners who will help you develop your best plan of action for home ownership.