Magazine article Mortgage Banking

Two in Three Millennial Unaware of Closing Costs

Magazine article Mortgage Banking

Two in Three Millennial Unaware of Closing Costs

Article excerpt

San Diego-based ClosingCorp[R] announced the results of a nationwide survey that shows roughly two-thirds of millennials who plan to buy a home are unaware of closing costs.

The survey also found that more than one-third of potential homeowners in all age brackets are either "not very" or "not at all" aware of closing costs.

Closing costs are an important part of budgeting and being prepared financially to purchase a home. The widespread lack of awareness about closing costs signals many future homebuyers need more education about the home-buying process.

A press release announcing the survey's findings noted that closing costs typically equal 2 percent to 5 percent of the total purchase price of a home. They are incurred by the buyer or the seller and cover everything from home inspections, the appraisal and attorney's fees to home warranties.

The release stated that the survey of more than 1,000 adults found that most people learn about closing costs from Realtors[R] or by doing their own research. Millennials, the study found, are more likely to learn about closing costs from a Realtor as opposed to a lender by a ratio of nearly two to one. …

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