According to a recent survey, two out of every three millennials (age 18 to 34) who plan on buying a home are unaware of the closing costs involved. And it’s not just young buyers – fully 33% of all potential home buyers say they are generally unaware of the costs involved at closing. And these costs are not insignificant, often amounting to 2 to 5 percent of the total purchase price.
According to the survey, those who are aware of closing costs learn from their real estate agent and not the lender.
While interest rates are clearly the driving force behind most real estate transactions, it is important that the potential buyer be educated as to the fees and costs collected at the closing.