One of the most helpful first time home buying tips is to set aside some money for closing costs. We know that it’s tempting to dig into this money to finance things on your wish list—such as a pool in the back yard—but preparing for closing costs can do a lot for reducing stress and letting you really enjoy your new house.
What Are Closing Costs?
Closing costs include just about everything over and above the home’s purchase price. For example, there are attorney’s fees, homeowners insurance, taxes and additional lender fees. These costs average around 2–5% of a home’s purchase price, but this can vary by lender. Now for the twist: If you’re working with a savvy real estate broker, you may be able to negotiate so the seller pays most or all of the closing costs. Buying a home in a buyer’s market gives you extra leeway.
