Millennials unaware of full cost of closing [VIDEO]
Most experts agree that millennials are interested in buying homes. One obstacle that many will face during the process, however, is a lack of knowledge about the extent of closing costs.
The majority of millennials are completely unaware of the extra costs that get tacked onto the price of a home during the closing process, and those who are uninformed could see their deals fall off track due to unexpected costs. It’s not just these younger people who are unaware of how much they’ll be paying during the closing process, though. The difference is the majority of people in their 20s and early 30s don’t understand closing costs, as opposed to just one-third of all adults who indicated they were unaware of the price tag of closing.
While millennials know plenty about technology and can certainly carry out plenty of research during the home buying process, they aren’t aware of the traditional costs involved, such as during closing. Typically during the closing process, the cost of things such as title insurance and lender origination fees, as well as realtors’ commissioners, can add up to a lot more than home buyers expected. Closing costs can equal 3 to 5 percent of a median-priced home, or between $6,000 to $10,000.
The survey shows that everyone, not just millennials, could use a refresher on the home buying process, as well as the costs of closing. Oftentimes, people consider interest rates in the home buying process but don’t think to consider other costs, such as realtor, lender, title and other settlement fees. It’s up to various real estate professionals and lenders to take on the role of educator and teach people - especially millennials and first time home buyers - about the costs of closing.
By: Equity National March 30, 2015 Title