A recent survey by closing cost data & technology provider ClosingCorp found that over half of homebuyers are still surprised by closing costs, in spite of the year-old TRID rules that were supposed to help consumers better understand costs when buying a home. The survey interviewed 1,000 first-time and repeat homebuyers who had purchased a home between January 1, 2016 and January 1, 2017.
“As more and more Millennials become first-time homebuyers, TRID or Know Before You Owe has made it easier for them to understand the costs and fees they’ll face at closing. Yet there are still surprises during the closing process,” said Bob Jennings, chief executive officer of ClosingCorp.
The top five closing costs that most surprised homebuyers were:
- Mortgage insurance (24%)
- Bank fee/points (23%)
- Taxes (22%)
- Title insurance (21%)
- Appraisal fees (20%) and fees paid by the buyer vs. seller (20%)