According to aÂ survey conducted byÂ ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.
After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.
â€œHomebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.â€�
Bankrate.comÂ gathered closing cost data from lenders in every state and Washington, D.C. in order to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.
Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. According toÂ Freddie Mac,
â€œClosing costs are typically between 2 and 5% of your purchase price.â€�
Speak with your lender and agent early and often to determine how much youâ€™ll be responsible for at closing. Finding out that youâ€™ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.
Source: Keeping Current Matters