What is one of the main reasons for reviewing estimated closing costs?

Reviewing estimated closing costs primarily enables potential homebuyers to prepare for the financial obligations associated with buying a home. Closing costs can include a variety of fees such as loan origination fees, title insurance, appraisal fees, and prepaid costs like property taxes and homeowners insurance. Understanding these costs helps buyers budget appropriately and ensures they are financially ready when the time comes to finalize the purchase.

Being well-informed about these costs can also help buyers avoid surprises on closing day, allowing for better financial planning and management of their overall housing budget. This preparation is crucial for making a smooth transition into homeownership and ensures that buyers understand the total financial commitment involved in closing on a property.