I get this question a lot! “What should we expect for closing costs?”. There’s a lot of variables that can go into closing costs. But don’t worry, that isn’t me blowing you off. But it really comes down to these variables!
- The type of financing you use
- The price of the house you make an offer on
- Closing cost concessions paid by the buyer
- Additional warranties
- Fee to government offices for recording the deed
- Closing costs also include taxes, inspections, title insurance and homeowners insurance
All of that said, if you re planning on buying a home in or around St Louis, it’s a good rule of thumb to plan for your closing costs to be about 3% of your purchase price. So if you buy a $150,000 home, you should expect to come to closing with about $4,500.
Undoubtedly, someone is reading this blogpost and thinking to their self, “well we want to buy a home, but we don’t have any money saved now for closing costs!” . It’s okay! One of the things I take very serious is negotiation, and if we know that’s a concern for you, we can often times work closing costs into your offer, as well as work with your local lender for some other solutions. But it’s important that you let your agent (aka ME) know up front if you don’t have a lot of money for closing.