Dated: 02/01/2018

Views: 11


Buying a home entails numerous upfront costs. Some are paid out-of-pocket after the seller accepts your purchase offer, while others are paid at closing. Here are 7 Associated Costs of Buying a Home you should consider before making the purchase.

Image title

  • Earnest Money. Earnest money generally ranges from 5% to 10% of the home’s purchase price, depending on local market conditions and the seller’s preference. 

  • Down Payment. Typically ranges from 3.5% (FHA loans) to more than 20% of the purchase price.

  • Home Appraisal. Lenders require a home appraisal prior to approving the loan. Appraisal costs, typically $300 to $500.

  • Home Inspection. The cost is similar to the appraisal and is usually paid at the inspection.

  • Property Taxes. This expense varies widely based on your local tax rate and the closing date. You could be responsible for nearly six months of property taxes, or practically none.

  • First Year’s Homeowners Insurance. Costs vary based on the value, style, location, and contents of the home, as well as your credit score.

  • Other Closing Costs.  Other closing costs include loan origination charges, credit report fee, flood certification fee, lender’s and owner’s title insurance, recording taxes, state and local transfer taxes, first month’s mortgage interest, and closing fee. As a rule of thumb, you can expect your total closing costs to range from 2% to 4% of purchase price.

Copyright © 2017 Avanti Way Realty, All rights reserved.
Article Source: Trulia Blog

Our mailing address is:

8700 W Flagler, Suite 160
Miami, FL 33174

Blog author image

Mili Del Carpio

Always holding client satisfaction as her highest priority. Clients working with her never fail to appreciate her enthusiasm, professional integrity, and efficiency. After attending the University....

Latest Blog Posts

Importance Of The Inspection Process For Buyers

Inspecting the physical condition of a house is an important part of the home-buying process and should be included in your purchase contract as a condition of closing the sale. It is important to

Read More

Buying Real Estate Under LLC

If you own your own business, chances are you have a limited liability company (LLC) or, at the very least, you know what that is. Business owners may choose to buy a home using an LLC or under

Read More

Fees Included In Closing Costs For Buyers

Closing costs vary widely based on where you live, the property you buy, and the type of loan you choose. In this article we outline closing costs when you purchase a home with financing.Typically,

Read More

Financing Requirerments To Buy A Home

Mortgage lenders require paperwork that verifies every facet of your financial life: income, debts, assets and more. The lender will request the following documents, so it is very important to

Read More