Closing Costs VS. Prepaid Costs Breakdown

Of all the expenses that come with buying a home, prepaid costs can sometimes take buyers by surprise. (And while we all love a good surprise, you definitely don't want one in the buying process!). So, here's what to know:

Prepaid costs are upfront cash payments you make at closing for various mortgage expenses before they’re actually due. Funds are held in escrow until needed. They include:  

- Initial escrow deposit

- Homeowner’s insurance premiums

- Real estate property taxes

- Mortgage interest 

Prepaids are separate from closing costs which include the title search, appraisal, and cost of processing the loan. 

Curious about what your bottom line would be if you purchased a home? Want to buy but don't want surprises? DM me, and let’s crunch the numbers!

If you're thinking of buying, save this post for later, or share with a friend who’s beginning the buying process! Questions? Send me a message!

Keichel Lewter, Realtor ®

Call or text me 410-701-0802

Email Keichel.lewter@exprealty.com

Web www.BuyMarylandRE.com

eXp Realty LLC 888-860-7369