Closing Costs: How Much to Budget




Key Video Takeaways


Renada, a New Yorker ready to make the switch from renter to owner, thought she'd sailed through the home buying process. She was approved for a loan, found a condominium in Hell's Kitchen and signed a purchase agreement, all in a relatively short period of time. She expected more of the same during her closing appointment. As she reviewed the closing paperwork, though, she realized that she was in unknown and unexpected territory: The list of fees associated with her purchase was dizzyingly long, and the price tag higher than she'd imagined.

"Everything came to a stop," she said. "I don't get it! There's a title fee, an escrow fee, insurance. It's too much fine print for me."

We asked the What Works Nowexperts to explain just how much buyers should anticipate spending on closing costs and what those costs represent. Here's what they said: