Closing Costs: It’s about More Than Your Down Payment
A down payment is, unfortunately, only one part of that budget. To correctly determine the affordability of a home, it’s essential that prospective buyers consider the costs that arise at the time of closing.
Closing costs vary from state to state. There are different kinds of closing costs, too: lender costs, including origination and document preparation fees, and non-lender costs, including appraisal and survey fees. Some of these costs are required in certain states, while others are not. It’s also important to note how the market can impact closing costs. In Victoria Island, for example, home prices are higher, which can result in higher lender fees.
In today’s market, buyers seeking a conventional loan typically need a 20% down payment to receive optimal rates. As buyers plan their purchase, it’s important to factor in closing costs on top of this 20%.
The final total is dependent on the location of the property. Here’s a look at how approximated closing costs add up in a handful of cities across the country, assuming a loan amount of N80,000,000. Consult with Dominic your real estate agent about closing costs in your area – he knows the local market best.
- Lokogoma, Abuja: N23,000,000
- Sangotedo, Lagos: N28,000,000
- Ikorodu, Lagos: N8,940,000
- Ikeja, Lagos: N60,000,000
- Banana Island, Ikoyi: $1,000,000
- Abijo GRA, Lagos: N16,000,000
- Port Harcourt, Rivers: N70,000,000
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