Before you get the keys to the home that you're buying, you'll go through the closing process. Besides signing lots of papers, it also includes paying certain fees. How much money are we talking about?
A homebuyer typically pays between about 2% and 5% of the home purchase price in closing fees, but the amount varies widely depending on where you live.
For an idea of how much you'll pay in closing fees, check out Bankrate.com's annual state–by–state survey. Be aware that the amounts are based on good faith estimates for a hypothetical $200,000 mortgage loan from up to 10 lenders in a city (or several cities) in each state plus Washington, D.C. The loan in this scenario was for the purchase of an existing single–family house, not brand–new construction. The hypothetical buyer was not a first–time homeowner, made a 20% down payment, and had excellent credit. Also, the estimates excluded some fees that you might need to pay.
Learn more about what to expect at closing on My Home by Freddie Mac®, where you'll find a closing costs calculator and Meet the Experts video series as well as lots of other information and resources.
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