Many buyers tend to think that the down payment is the only expense involved in closing. However, this is not the case. There are actually a few different costs you should be prepared for before you reach the closing table.
This includes both recurring and nonrecurring closing costs.
Nonrecurring closing costs are one-time fees. These generally include lender fees, appraisal fees, as well as title and escrow charges.
Recurring charges are paid on a continual basis. This includes homeowners insurance, property taxes, and mortgage interest. You want to make sure that you meet with a quality mortgage advisor who will be able to walk you through what to expect.
The key is to remember that your funds to close will be more than just a down payment. You need to budget for nonrecurring and recurring closing costs.
Doing this will help you avoid any unwelcome surprises at the closing table.
If you have any other questions or would like more information, feel free to give us a call or send me an email. We look forward to hearing from you soon.