What Every KC Homebuyer Should Know About Closing Costs

It's essential to plan for all the costs you'll be responsible for before deciding to buy a home in the Kansas City area. You may be saving for the down payment, but remember to also prep for closing costs.

What are typical closing costs in the KC housing market? How much should you budget? The Just Say Home KC real estate experts break down the answers to these questions below.

What Are Closing Costs?

Bankrate defines it this way:

"Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it's being financed . . ."

Closing costs are the additional fees and payments homebuyers have to make at closing. While these costs can vary based on location and situation, Freddie Mac reports that closing costs generally include:

  • Government recording costs
  • Appraisal fees
  • Credit report fees
  • Lender origination fees
  • Title services
  • Tax service fees
  • Survey fees
  • Attorney fees
  • Underwriting Fees

How Much Are Closing Costs?

The same Freddie Mac article noted above states that national closing costs are typically between 2% and 5% of the total purchase price of your home. With this statistic in mind, there's an easy way to figure out your budget for these additional fees.

Imagine finding a Kansas City home you want to purchase, listed at the current housing market median price of $384,500. According to the 2-5% Freddie Mac estimate, your closing fees would be roughly between $7,690 and $19,225.

This statistic can help you estimate these fees, but remember: if you're searching for a home in the Kansas City area above or below this price range, your closing costs will increase or decrease accordingly.

Are You Prepared To Close?

Freddie Mac provides excellent advice for homebuyers, saying:

"As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs."

The best way to understand Kansas City closing costs is to partner with the trusted real estate professionals at Just Say Home KC. These local real estate experts will help you know how much to save and what to expect throughout the buying process. Working with these experienced agents will guarantee quick and accurate answers to any questions that pop up along your homebuying journey.

Bottom Line

It's crucial to plan for all fees and payments you'll need to cover when you're closing on your Kansas City home. Partnering with the local real estate professionals at Just Say Home KC will give you the guidance and confidence you need throughout your homebuying process.

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