A mortgage gives you the funding you need to successfully purchase a home. But in order to get the money from the bank, there are upfront fees you’ll need to pay the lender.
So what, exactly, are those fees, and how much do they cost?
A recent article from realtor.com outlined common mortgage fees and the average costs, including:
- Closing fee. When you close on your home, a representative from the title company will attend the closing to oversee the property’s title transfer, which is a service you’ll have to pay for. Generally, you can expect to pay between $300 and $600 for the closing fee.
- Title search. Your lender needs to be sure there are no liens on the property you’re trying to buy, and they get that information through a title search, which will also generally run in the $300 to $600 range.
- Lender’s title insurance. While title searches are thorough, things can get missed. So in order to protect themselves (and you) in that situation, your lender will also require you to cover the cost for lender’s title insurance, which is usually about 0.5 percent of the home’s purchase price.