Costs To Buy With Financing

Dated: 03/14/2018

Views: 84

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.

Blog author image

Juan Igartua

Juan Carlos Igartua is a premier real state advisor in the South Florida Market. With over 16 years of experience in sales, customer satisfaction, and brokerage services he's committed to meet our cl....

Latest Blog Posts

Por Que Es Mejor Comprar Que Alquilar

Esta siempre ha sido una pregunta polémica. Para unos es mejor comprar y disfrutar de los beneficios de ser propietario, mientras que, para otros, rentar es la mejor opción para evitar el estr

Read More

You Can Still Find Reasonably Priced Homes In These Miami Neighborhoods But You Have To Hurry

According to a new report by the Miami Association of Realtors, buyers are flocking to neighborhoods such as Westview, Miami Gardens and Hialeah to snap up homes and condos in the $200,000-$350,000

Read More

Todavia Puede Encontrar Casas A Precios Razonables En Estos Barrios De Miami Pero Tiene Que Apurarse

Según un nuevo informe de la Asociación de Realtors de Miami, la gente se va a vecindarios como Westview, Miami Gardens y Hialeah para echar mano a las pocas casas y apartamentos que quedan en el

Read More

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