Posted on September 28, 2017 - 12:53 PM
by Mark Ottinger
Many buyers don't even realize that there are closing costs associated with purchasing a home beyond the down payment required. More than half of those that do know are surprised at the amount it does cost them, as it was higher than expected.
Besides the earnest money deposit and the down payment, often buyers are required to have mortgage insurance, there's lender fees, sometimes points, title insurance, survey, inspections, appraisal, taxes and some utilities.
In MO, typically buyer's closing costs are about 3% of the purchase price.
If you're thinking of buying, it's very important to speak with your lender in detail about the breakdown of all the costs involved. Not only do you have the earnest $ deposit, the down payment and the closing costs, but most lenders require you to have 2-3 month's reserve in your bank account.
Also, work with an experienced Realtor who can negotiate these closing costs by having the seller pay for them in the contract.
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