what is the typical amount of money paid in up front closing costs for a home purchased this year?

Karina1
Other/Just Looking
Davis, CA

Answers (1)
Grace Olson-Bon...
Agent
Long Beach, CA
FIRST ANSWER

A buyer's closing costs can range from 2-5%. These costs include your lender fees, escrow fees, notary, document fees, courier charges, prepaid taxes, HOA dues and mortgage interest. On a smaller purchase price (i.e. $100,000) these fees can be closer to 5%, on a larger purchase price ($1,000,000) these costs can be closer to 2% (there is some economy of scale).

I don't know what the average amount buyers are paying - depending on your market, if there are multiple offers, then seller's don't have to pay these fees to be competive. In slower markets, or for a property that has been harder to sell, sellers will often agree to pay up to 3%. Lending guidelines vary, but most lenders will allow a seller to pay 3 - 6% toward the buyers closing costs, depending on the buyers type of loan.

-Grace
Grace Olson-Bonilla, http://www.SoCalGrace.com

Thu May 14 2009, 20:59

Didn’t find what you were looking for? Ask a question!

Search Advice

Ask a question

Got a real estate question? Get answers from locals, experts and real estate pros.
Ask
Email me when…

Learn more

View all » 1 - 3 of 18
Copyright © 2009 Trulia, Inc. All rights reserved.   |   Fair Housing and Equal Opportunity
Help us improve our service—send us feedback