Closing costs extend beyond your down payment and include various expenses associated with a new home purchase. Here's a breakdown of some common costs:

Legal fees

Working with a lawyer is essential for handling the legal aspects of your purchase and you can expect to spend between $1200 to $1500

Title insurance This protects against any issues with the property's title, such as existing liens or ownership disputes. The cost of title insurance can vary based on the purchase price of the property.

Home insurance

Mortgage lenders require you to have property insurance to protect against potential damages or losses. The cost of property insurance will depend on factors such as the property type, location, and coverage amount.

Adjustments

On closing day there may be adjustments for property taxes. You may be responsible to reimburse the seller if they have prepaid all or a portion of their property taxes.

Generally, lenders ask to show an additional 1.5-4% of the purchase price available to cover closing costs.

As we conclude our 12-week First-Time Home Buyers Series, I want to thank you for your participation whether it was a like, share or comment. Looking ahead, I'd love to hear your thoughts on future topics. What would you like me to cover next? Your feedback shapes the content, and I'm excited to bring you more valuable insights