Closing on a property is a very challenging time for a would-be homeowner. Being informed, either through your mortgage broker, your real estate agent, or through self knowledge is the best thing you can do when going through this procedure.
A good real estate agent can help you tremendously. They should know the local market well enough to help you save money in whatever way they can. Since closing costs are handled differently in different areas, having a professional with experience in that area is your best bet. They can give you a better idea of what costs are customarily paid by the buyer, and which ones are paid by the seller.
The mortgage broker you deal with can make a big difference in your
closing costs too. Have them show you several programs suited to your
needs. There are lots of ways to structure closing costs based on your
points and down payment.
Closing costs on average are from 3% to 5% of your loan amount, and the exact amount will be told to you the day before the closing. All closing costs are to be paid at the settlement of the mortgage loan.
There are two types of closing costs
Recurring closing costs you pay repeatedly over the course of your home ownership. These would be items like property taxes or homeowner insurance. Property taxes placed in escrow are one of the largest expenses at closing.
The following is a listing of the items that may be on your GFE.
Loan Origination Fee (e.g., 1% of the amount borrowed)