Mortgage

Survey finds it’s often up to Realtors to clue millennials in to closing costs

Two-thirds of 18- to 34-year-old buyers aren't factoring in costs that could derail deals

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Most millennials are blissfully unaware that title insurance, lender origination fees and other closing costs can amount to 3 to 5 percent of a home's purchase price -- $6,000 to $10,000 for a median-priced home -- and it's usually up to Realtors to clue them in, according to a survey by ClosingCorp. Among 1,000 adults taking the survey, two-thirds of those in the 18- to 34-year-old age bracket were unaware of closing costs. Millennials were twice as likely to learn about closing costs from a Realtor than from a lender, the survey found. Throw in Realtors' commissions -- which typically range from 5 to 7 percent -- and the actual price of that $202,600 median-priced home could end up being north of $220,000. The survey highlights the need to better educate all consumers on the closing process, particularly millennials and first-time homebuyers who may need to adjust their assumptions about how much house they can buy, said ClosingCorp CEO Brian Benson in a statement. "While...