Does the loan from a lender also cover your closing cost

[Oscar Flores]

Hi when planning on how much I would need to save for my first purchase should I include closing costs or is it paid thru the loan

[Ned Carey]

@Oscar Flores it depends on the kind of loan. A hard money lender may or may not. A traditional lender will not pay closing costs. The LTV (loan to value) is the loan amount vs the sale price or appraised price whichever is lower.

Figure about 3% for closing costs but this can vary tremendously. Just the  "Points" on the loan can be 3%. If property taxes are due in a month you will have one months worth of property taxes to pay. If they were just paid you will have almost a year of property taxes to pay. There are may factors which affect closing costs.