Don't Forget About Closing Costs

When most buyers start thinking about purchasing a home, they focus on one number: the down payment.

That makes sense. It's the number everyone talks about.

But there's another expense that deserves just as much attention—closing costs.

I've seen buyers spend months saving for their down payment, only to realize late in the process they hadn't planned for the other costs involved in completing the purchase.

The good news is that closing costs aren't always as straightforward as people think.

Depending on the loan program, the market, and the terms of the purchase contract, there may be opportunities to reduce your out-of-pocket expense. Seller credits, lender-paid options, and certain assistance programs can all play a role.

That's why every buyer's strategy should be customized.

Two buyers purchasing the same-priced home may end up with very different cash-to-close numbers.

The biggest mistake isn't having questions.

The biggest mistake is making assumptions.

Before you decide you need another six months to save, have someone run the numbers for your specific situation.

You may be a lot closer than you think.

— Michael Belfor

American Pacific Mortgage