What Are Closing Costs?
What are my “up front, out of pocket” expenses when purchasing a home?
Buying a home requires more than just a down payment. Here is a list of common expenses that you incur:
*Earnest Money Deposit: this is your “Good Faith” deposit. Essentially, this is the amount of money you agree to forfeit should you not meet your contractual obligations.
*Down Payment: The amount of your down payment will be dependant on your specific loan program. (Ex: 20% down, 15% down, 10% down, 5% down, 3% down, etc.)
*Home Inspection Payment: Home Inspection companies require payment at time services are rendered. The cost will depend on the size of the home, however we recommend you budget approximately $400-$600.
*Appraisal: Your lender will likely charge you an appraisal fee and many require that fee to be paid at the time the appraisal is ordered. This fee will vary, however we recommend that you budget between $400-$600.
*Credit Report: Your lender will also charge you a credit report fee. Normally, this will cost approximately $30, however this is just an estimate as fees will vary from lender to lender.
Depending on the type of home you are purchasing and your loan type, there may be other fees associated with purchasing your new property. We will be sure to discuss your individual situation with you!