Here’s a question for homebuyers: can you shop for the lowest closing costs on the market?
One consumer advocate certainly thinks so. His name is Timothy Dwyer and he’s on a mission to convince new homebuyers that you don’t have to be a prisoner of high closing costs.
Dwyer, president & CEO of Entitle Direct Group, Inc., firmly believes that homeowners can slash new home closing costs by learning how to shop for the best deal.
Certainly, closing costs are a pain in the neck for homebuyers. On average, they can run up to 5% of the total purchase price of a new home. In hard numbers, that’s a big hit to the old pocketbook. For a $300,000 home, the closing costs would be in the $12,000 range.
Closing costs do cover a lot of ground when buying a new home. According to EntitleDirect.com, the average costs cover:
- Lender fees (origination fee, application fee, document preparation fee, etc.)
- Government fees (recording fees, mortgage and transfer taxes)
- Prepaid fees (real estate taxes, condo fees and homeowner’s insurance)
- Third-party fees (appraisal, credit report, flood certification/insurance and title insurance — often the largest single closing expense).