How much should I estimate for closing costs?

by JESSICA JONES
(HIGH POINT,NC)

Sorry, I already submitted my first question and just thought of another one. When buying a house, I know that the closing cost can vary. I'm concerned and want to get an idea of what to expect. So my question is "how much should I estimate my closing cost to be?"

=====ANSWER=====

Hello Jessica,

Every question should be answered when you are getting ready to buy a house. As you may have noticed, this website is focused on first time home buyers and I try to discuss all the different aspects of the mortgage process.

When I was in the mortgage business (now retired) I found that the loan officer was just too quick to try and get the loan closed so they can get a commission. They need to take time to explain things to you.

So to help you estimate closing costs on a mortgage I have a few suggestions for you.

1) a fast and dirty way to estimate is to figure that 5-7% of the sale price could be your cost for closing.

2) use my FREE closing costs calculator which can give you some kind of an idea. To use this you will need some numbers from a good faith estimate.

If you watch the FREE video I mentioned in the first post, it will also help you know how to guess on the costs involved without talking to a loan officer.

Hope this helps.

Regards,

Jeffrey Ragan

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