Before deciding to purchase a home, ensure you plan for all the costs you'll encounter. While you're diligently saving for the down payment, remember to prepare for closing costs too.

Here's some useful information on understanding these costs and setting a budget for them.

What Are Closing Costs? As explained in a recent Bankrate article:

"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..."

In simpler terms, your closing costs are the additional fees and payments due at closing. According to Freddie Mac, these typically 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? Freddie Mac estimates closing costs to be between 2% and 5% of the total purchase price of your home. So, if you're eyeing a home in Conejo Valley( Westlake Village, Agoura Hills, Simi Valley, Thousand Oaks) at today's median price of $800,000, your closing fees could range from roughly $16,000 to $40,000.

However, keep in mind that if you're looking at homes above or below this price range, your closing costs will adjust accordingly.

Ensure You're Ready To Close Freddie Mac advises homebuyers to:

"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 approach is to team up with trusted real estate professionals. This ensures you understand how much to save and what to prepare for, while also providing go-to resources for any questions that arise.

In Conclusion Planning for closing costs is crucial when purchasing a home. Partnering with local real estate professionals can offer the guidance and confidence you need throughout the process.