Closing/Settlement Costs
By the time you reach the closing of escrow or settlement table (same thing, different names in different states), almost a dozen people will have done something in the processing of your purchase. Each one wants to be paid for those efforts.
Some costs may seem silly (why do you need a flood certification if you’re buying a home in the desert?), or duplicative, but most are unavoidable. First American has an Affordable Settlement Services Bundle that can help you keep these costs down.
Why Should You Worry About This Now, when you haven’t even found a house yet?
- Closing costs are usually in the thousands of dollars (the national average is around $3,500)
- You have to pay them in cash (with a certified check)
- You have to pay them at closing/settlement, which is usually right about the time you are fishing under the couch for spare change because you cleaned out your bank accounts to come up with the down payment, earnest money and moving expenses
This means you’ll need to add them into your calculations about how much money to save to buy a house.