This is a YouTube video titled "How Much are my Closing Costs⁉️🤔🤔" containing an explanation about the components and variability of closing costs in real estate transactions. The speaker provides detailed information on why closing cost estimates are often placeholders until finalized and advises buyers on what to focus on when comparing lenders. The content is educational and aimed at prospective home buyers.
How much are my closing costs? I love this question and it's super important to understand it very well as a buyer. So let's dive in. We like to tell our clients a realistic range of 2 to 3% of the purchase price for the total closing cost amount. Anything else is honestly not true from any lender and I'll explain why. So a big part of the closing costs are the title fees. The title company is determined generally by buyer, seller and the realtors involved, not the lenders. So each lender will throw their estimate, but they're all kind of just a placeholder until they get replaced by the actual title company's numbers. And which happens after you're under contract. You as the buyer get to pick out your homeowners insurance, which means all lenders will throw a placeholder estimate for insurance and then it gets wiped away once you get the real numbers. So all of our estimates are kind of just a false placeholder until you get the real deal. Taxes. Same things how a company will confirm how much the property taxes are. Appraisal, it gets bid out to a bunch of appraisers. So nobody knows exactly what the appraisal amount will be. But there's a range, same thing for all of these. So ultimately it's a placeholder range. When you're under contract, that's a big part of finishing up your loan is getting all those closing costs in and your lender. We just play accountant really. We collect everyone else's information and put it together to provide you the exact precise closing cost, which we do well before closing, but up front. I know a lot of people want to know exactly what the closing cost is. There's no way to know. We don't want to give you false information or undercut the closing costs like some lenders do. We just want to give you realistic numbers and make sure our lender fee and our rate are as low as possible. That's the only thing any lender has to control. So if you're comparing lenders, compare interest rate and the lender fee and that's how we help you save.
