REAL ESTATE TIPS 107: Anticipate the Unexpected

When purchasing a home there are numerous fees and charges that must be paid prior to and at the closing, these fees and charges are known as "closing costs". Aside from your down payment (if you're taking out a mortgage loan) there are cost that include appraisal, title insurance charges, mortgage origination fees, property transfer fees and many others that must be paid in order to close your transaction. In most residential transactions closing costs can range from 2-5% of the purchase price, I usually advise my clients to anticipate 5% due to the fact that there are different factors that effect the amount you'll need in closing costs as every transaction is different in many ways. It's better to be over-prepared, if you come out with money left you can treat yourself to something nice!