How Much Will You Pay in Closing Costs?

Closing costs, together with your down payment, are costs you need to pay upfront when you are buying a home. You may be wondering how high closing costs are. Usually, closing costs are about 2-3% of the purchase price for your home. So, for instance, let’s say you are buying a home using a $300,000 mortgage.

Closing Cost Payment

Your closing costs would theoretically be somewhere in the range of $6,000 to $9,000. The 2-3% rule of thumb applies to most standard home loans, but this rule may be broken if it’s a very high or low priced home – or if it’s a unique loan, like a Down Payment Assistance, Bank Statement Loan, ITIN, etc. Regardless, closing costs are not generally a huge amount with respect to the mortgage as a whole, but are enough to sting a little financially. Thankfully, there are things you can do to reduce closing costs.

How Can You Pay Lower Closing Costs?

Here are a couple of things you can do to reduce your closing costs.

• Choose the right mortgage company. Some mortgage companies charge higher fees than others, which can have a significant impact on your closing costs. Shop around and make sure you are picking a company that will minimize your fees.
• See if the seller will pay some of the closing costs. There are situations where the seller might agree to pay some or all of your closing costs. They might do this, for example, if they are in a rush to sell the house and move out. You are most likely to be successful with this in a buyer’s market.

Buy a Home Affordably Now in Kansas City

As a Missouri mortgage broker, McGowan Mortgages has established relationships with over 200 lenders and banks. That puts us in a prime position to help you find a mortgage that features affordable closing costs. If you are ready to get started, please give us a call today at (816) 631-9687 to schedule your home loan consultation. We can work with you in 40 different states.