Understanding Closing Costs When Buying Your Knoxville, TN Home

Most people who are in the market for a new home are aware of the costs associated with purchasing a home and moving, but closing costs can be expenses that may be overlooked, especially for first-time home buyers.  In most cases, they can be approximately four percent of the purchase price of your home.  So before planning your home purchase budget, here are some expenses that aren’t always talked about that you may want to include when buying your Knoxville TN home.

 

In general, there are two types of closing costs, recurring and non-recurring.  Recurring costs include things like fire and flood insurance, property taxes, and mortgage insurance; these are expenses that should become part of your monthly budget and in most cases, are often anticipated by new home buyers.

 

Non-recurring costs are one-time costs that are associated with closing a home purchase, and usually make up the bulk of extra expenses.  Non-recurring closing costs usually include:

  • Title Policies
  • Escrow
  • Wire Fees
  • Delivery
  • Endorsements
  • Recording
  • Transfer Taxes
  • Home Protection Plans
  • Natural Hazard Disclosures
  • Home Inspection
  • Lender Fees

 

All of these costs will be discussed with you by your lender. And your actual closing fees may include just a few of these costs. Purchasing a home is a huge investment and expense, and getting a clear picture of the cost before signing your name on the dotted line is important.

 

If you would like a referral to a lender or you are thinking of buying your Knoxville TN home, call me today at 865-588-3232