Noob Needs Advice: extra cash needed for closing costs?
Hello All,
When looking at properties it's obviously to everyone, even myself, to calculate the cash I need for a down payment, but I assume I will need to save up even more cash for the closing costs? Is this a fair assumption or are there ways to have the closing costs included in the loan installment, etc.? Any additional information and advice is greatly appreciated!!
David
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- Real Estate Broker
- Cody, WY
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Yes, you should anticipate about 1% - 2% of the purchase price for closing costs. Some loans will wrap that into the loan. Sometimes you can get the seller to pay them for you (or a portion of them). But you should be prepared to pay them yourself.
You should also have a reserve for emergencies during the first year! Almost every property I've bought had a major problem during the first 6-12 months. Don't spend your last dime on the purchase and then go bankrupt dealing with a long vacancy or a dead furnace.
- Nathan Gesner
