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Realistically, how much extra cash should I budget for closing costs?
first-time homebuyerreal estatemortgagebudgeting
Plamen_25
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17.03.2023
Posts: 504
Topic Starter
I'm currently in the process of getting pre-approved for my first home, and while I have a solid down payment saved, I'm getting nervous about the hidden closing costs. Everyone gives me different estimates, ranging from 2% to 5% of the purchase price, which is a pretty huge gap when you're on a tight budget. Does anyone have a breakdown of what these costs actually look like in practice versus what the lender initialy estimates? I'm trying to figure out exactly how much liquid cash I need to keep in my savings account beyond the down payment so I don't get blindsided at the closing table.
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