Have you budgeted for CLOSING COSTS

Dated: 12/16/2019

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Saving for a down payment is a key step in the homebuying process, and it's not the only piece you need to include in your budget.

Another factor that's important to plan for is the closing costs required to obtain a mortgage.

When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.

There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time.

The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll get this form about three days before closing since, once you (the borrower) sign it, there’s a three-day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your real estate agent is a great resource for getting you all the answers you need.

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Valerie Reeg

As a child, I moved around quite a bit but as an adult I've made Colorado home since 1984. I'm a strong believer in continuing education and am always taking classes to keep up on current real estate....

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