Count closing costs before you buy a home: test your skills
Budget roughly 2–5% of the price on top of the down payment, and compare the Loan Estimate line by line. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Estimate closing costs
- Use the Loan Estimate and Closing Disclosure
- Avoid closing wire fraud
- Practice
1. Closing costs commonly run about…
- Practice
2. When must you receive the Closing Disclosure?
- Practice
3. Before wiring money to close you should…
- Key idea
4. Which statement best explains "The down payment is not the whole cheque"?
- Key idea
5. Which statement best explains "Compare the paperwork"?
- Key idea
6. Which statement best explains "Verify wire instructions"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
A $250,000 home with 5% down and 4% closing costs. What is the cash to close with no credits?
Show the answer
$22,500
Down: $12,500. Closing: $10,000. Total $22,500.
Multiply a home price you are considering by 3% to estimate closing costs.
More tests in this bootcamp
- Compare renting and buying with the full costs
- Check home affordability with the 28/36 guideline
- Balance your down payment, PMI and cash cushion
- Count closing costs before you buy a home
- Build a home repair reserve before something breaks
- Explore shared housing costs and landlord responsibilities
- Understand REITs: property exposure through investments
- Final exam: Housing and real estate