The Truth About Closing Costs (and How to Prepare)
You’ve found the perfect home, secured your financing, and you’re ready to close the deal. Then, surprise, you’re hit with unexpected closing costs.
If you're a first-time homebuyer in Central Texas, understanding closing costs can help you plan smarter and avoid any last-minute stress. Let’s break down what they are, how much they typically cost, and what you can do to prepare.
1. What Are Closing Costs? Closing costs are the fees and expenses due at the final stage of your home purchase, beyond your down payment. These cover a range of services needed to finalize the loan and transfer ownership of the property to you.
Typical costs include:
Loan origination fees
Title insurance and escrow fees
Appraisal and credit report
Attorney or notary fees (if applicable)
Prepaid taxes and homeowner’s insurance
Most buyers pay between 2%–5% of the home’s purchase price in closing costs.
2. Who Pays Closing Costs? While buyers usually cover the majority, sellers often pay part of the costs depending on the negotiation. In today’s market, many sellers are offering concessions to cover all or part of closing expenses.
Ask your real estate agent and loan officer (like me!) if closing costs can be covered through negotiation, lender credits, or down payment assistance programs.
3. Can Closing Costs Be Rolled Into the Loan? In some cases, yes. Certain loan types allow you to include closing costs in your loan balance or offer lender credits that reduce what you pay upfront.
This option can increase your monthly payment, so be sure to review all long-term implications.
4. How to Prepare for Closing Costs Knowing what to expect helps reduce surprises:
Get a Loan Estimate early in the process
Save a bit more than the minimum required
Compare fees with your loan officer to identify savings
I provide buyers with an itemized estimate early, so there are no surprises at closing.
Closing costs are a normal part of buying a home, but they don’t have to be overwhelming. When you know what to expect and have the right mortgage team guiding you, you can plan ahead and close with confidence.
Want a clear estimate of what you’ll pay to close on a home in Central Texas?
📞 Schedule a free 30-minute call with me today. Limited slots available so schedule your time HERE!
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