Closing Costs: What Missouri Home Buyers Should Expect

THE DOWN PAYMENT ISN'T THE ONLY MONEY YOU'LL NEED

When people start saving for a home, most of the attention goes toward the down payment.

But that's only one part of the upfront cost of buying a home.

There are several expenses that can come up between getting your offer accepted and receiving the keys. Knowing about them ahead of time can help you avoid surprises.

WHAT ARE CLOSING COSTS?

Closing costs are expenses associated with completing your home purchase and mortgage.

The exact amount varies depending on your loan, lender, property, purchase price and transaction.

They can include things like lender fees, appraisal fees, title-related expenses, prepaid homeowners insurance, property taxes and other costs associated with closing.

DON'T FORGET ABOUT THE HOME INSPECTION

A home inspection is another expense buyers should plan for.

While an inspection isn't technically the same thing as every lender-related closing cost, it's still money you may need during the buying process.

A good inspection can help you better understand the condition of the property before moving forward.

WHAT ABOUT EARNEST MONEY?

When your offer is accepted, you may be required to provide earnest money.

Think of it as money showing the seller that you're serious about purchasing the property.

Depending on the terms of your contract and successful closing, earnest money is generally credited toward the transaction rather than becoming an additional purchase price.

CAN THE SELLER HELP WITH CLOSING COSTS?

Sometimes.

Depending on your loan program, contract terms and the strength of the local market, we may be able to negotiate for the seller to contribute toward certain allowable closing costs.

That doesn't mean we should automatically ask for the maximum amount on every house.

The offer needs to make sense for the property and the situation.

HOW MUCH SHOULD YOU HAVE SAVED?

There's no single number that works for every buyer.

Instead of assuming you need a certain percentage, I recommend talking with a lender and building an estimate based on your actual price range and loan program.

Then we can look at homes with a much clearer picture of what purchasing one could actually cost.

DON'T DRAIN YOUR SAVINGS JUST TO GET THE KEYS

Buying the house is one thing.

Owning it starts the day you close.

If possible, I like buyers to think beyond closing and consider keeping money available for moving, furniture, maintenance, unexpected repairs and everyday life after purchasing the home.

The goal isn't just getting you into a house.

It's helping you purchase one that makes sense for you.

HAVE QUESTIONS ABOUT BUYING IN MISSOURI?

You don't need to know everything before starting the conversation.

If you're considering buying in the St. Louis or St. Charles area, we can talk about your goals, your timeline and what your next step should be.

Micadez Favors, REALTOR® | MRP

EXIT Elite Realty

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