Surprise! Survey Details Buyer Astonishment at Closing Costs

When it comes to closing costs, more than a few homebuyers are finding themselves in a state of sticker shock.

 

According to survey of 1,000 first-time and repeat buyers conducted on behalf of ClosingCorp, 17 percent of all homebuyers were surprised that costs and fees were even required as part of their transactions, while 35 percent of all homebuyers were surprised that these costs and fees were higher than they anticipated. Thirty-one percent of homebuyers, however, claimed that they were not surprised at all.

 

Furthermore, 58 percent of those surveyed said that their initial loan estimated had changed or been revised prior to closing. The most common reasons for the changes in the closing costs were a change to the loan based on what they qualified for (31 percent), an inaccurate lender estimate (27 percent) and a change to the loan based on the buyer’s request (23 percent).
“In addition, our survey shows that 52 percent of lenders were ‘off’ on their initial loan estimates, so there’s significant room for improvement,” said Bob Jennings, CEO of ClosingCorp.