As the closing date approached, the administrative costs—often called —began to stack up, typically totaling 2% to 6% of the loan amount :
Finally, at the closing table, Sarah and Mike had to "prepay" for certain future expenses:
Before they could even finish the paperwork, Sarah and Mike had to open their wallets for early due diligence: fees when buying a house
: Their local county charged $20–$250 just to update the public records with their names as the new owners . The "Advance Payment" Fees
: To show they were serious, they put down about 1% to 3% of the purchase price ($4,000–$12,000) into an Escrow Account , which would eventually count toward their down payment . They just found their dream cottage for $400,000
More than a Mortgage: Eight Surprising Costs of Buying a Home
Meet Sarah and Mike. They just found their dream cottage for $400,000. They have their 20% down payment ready, but their lender just handed them a "Loan Estimate" that made them realize the sticker price was only the beginning. This cost them another $350–$1,000
: Their bank required an appraisal to confirm the house was actually worth $400,000. This cost them another $350–$1,000 . The "Lender & Legal" Fees