Buyer Expenses when Purchasing a Home

 

DUE THROUGHOUT THE TRANSACTION

1. Credit Report: Each lender charges differently for this, but plan on $50-$75. Typically due at the time of loan application. Personal check to lender.

2. Earnest Money: Typically 1-1.5% of the purchase price of the home and is due at the time of making an offer on a property. Personal check, certified check, or money order to the designated holding company. This money becomes a credit to you at the time of closing.

3. Inspections:

    1. General: $250-$400 for an average size home. Due at time of inspection, approx 5-10 days after acceptance of offer. Personal check to your inspection company.
    2. Radon: $150-$200. Due at time of inspection, approximately 5-10 days after acceptance of offer. Personal check to inspector.
    3. Stucco: $300-$700
    4. Roof: no charge or up to $175
    5. Mold/Moisture: $200-$500
    6. Structural: begins at $300
    7. Pest and Termite: approximately $150-$200
    8. Lead Based Paint
    9. Sewer scope $100-$200

4. Appraisal: $350-$400. Due at time of appraisal, approximately 11-15 days after acceptance of offer. Personal check to appraiser or lender.

DUE AT CLOSING

5. Closing Costs: These vary depending on each lender. Be sure to obtain a ‘Good Faith Estimate’ from your lender before agreeing to obtain a loan through them. This will protect you from “hidden” charges. Some of the charges included in the closing costs are: Prorated taxes, prorated hazard insurance, prorated HOA dues, title company settlement fees, title insurance premiums, government recording fees as well as any fees payable in connection with the loan such as survey or ILC, application fee, loan processing fees, tax service fees, and flood certificate fees. Cashiers check made payable to yourself and signed over to the title company at the time of closing.

6. Down Payment: Depending on the type of loan you obtain, you may not need to make a down payment. Be sure to discuss this with your lender. Cashiers check made payable to you.

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