In the News: I Was Quoted in ConsumerAffairs on Closing Costs
I was recently featured in a ConsumerAffairs article titled “Closing Costs: Average Cost and How to Calculate,” where I shared insights on what homebuyers should expect when it comes to closing costs — and how to prepare for them.
In the article, I explain how closing costs typically range from 2% to 5% of a home’s purchase price and cover various fees such as title insurance, inspection costs, application fees, and lender charges.
I also emphasized the importance of asking your lender for a detailed estimate early in the process:
“This information will provide you the leverage to negotiate the percentage of fees down or even see if they will waive the fee.”
Closing costs represent the administrative and legal work required to finalize a mortgage. Buyers and sellers both contribute to these costs, which vary based on location, property type, and lender terms.
Key Highlights:
- Average closing costs: 2%–5% of the home’s purchase price.
- Who pays: Both buyers and sellers share responsibility.
- Negotiable fees: Origination, application, appraisal, and title-related fees.
- Non-negotiable fees: Government recording fees, transfer taxes, and property taxes.
Estimating Your Costs:
Use tools like Fannie Mae’s closing cost calculator to estimate fees based on your location and loan details. Karen recommends comparing multiple lenders and asking for detailed estimates to negotiate better terms.
Sample State Averages:
- California: $7,953
- Texas: $4,548
- Massachusetts: $7,964
- Georgia: $3,762
Expert Tip:
“When shopping for a lender, discuss what fees there are and ask for a closing cost estimate so you can easily compare various lenders and closing costs with one another,” says Kostiw. “This information will provide you the leverage to negotiate the percentage of fees down or even see if they will waive the fee.”
Being informed from the beginning helps prevent last-minute surprises and gives you more negotiating power when comparing lenders or service providers.
🔗 Read the full article here: How Much Are Closing Costs?
