The Real Cost of Buying a Home — Beyond the Purchase Price | Scott Andrew Alpaugh
The number on the listing sheet is not what buying a home costs you. This isn't a complaint — it's just reality, and it catches first-time buyers off guard more than almost anything else in the process. You budget for the down payment, you calculate your monthly payment, and then you get to closing and discover there's a list of additional costs that nobody handed you a flyer about. Here's what's actually on that list. Closing Costs (2–5% of the Loan Amount) Closing costs are the collection of fees paid at the time of closing to the various parties who made the transaction happen: the lender, the title company, the county recorder, the attorneys (depending on your state). In South Carolina and most states, buyers typically pay between 2 and 5 percent of the loan amount in closing costs. On a $300,000 home with a $240,000 loan, that's $4,800 to $12,000 — due at closing, in addition to your down payment. What's in there: Loan origination fee — ...