What Are Your Expenses?

There are several expenses when buying a home that you should be aware of and prepared for.

Home Inspections:

Most lenders require it along with a termite inspection.  You  and your lender need to know that the property is worth the financial investment. Fees for the home inspection vary based on the square footage of the house.  An inspection is usually just a basic overall view of the home's current condition.  You may need a specialist to inspect a fireplace, structural issue or septic system that is beyond the scope of your basic home inspector.  Most inspection fees are non-refundable because the inspector provided a service regardless of whether you purchase the house or not.

Down Payment:

A down payment is simply a part of your purchase price that you pay up front and most often does not come from a mortgage lender via a loan.  It will vary depending on the type of loan you get. 

Earnest money:

Earnest money is offered to the seller at the time you make an offer on their home to show that you’re serious about purchasing their property.  It’s also known as a good faith deposit.  It will go towards the purchase price of the home. You need to know that when you hand over that check, IT GETS CASHED IMMEDIATELY!

Closing costs:

Fees and charges in excess of the purchase price of the property are usually due at the closing of a real estate transaction. Both buyers and sellers are subject to various closing costs and may include fees related to the origination and underwriting of a mortgage loan, taxes, and insurance premiums, as well as title and record filings, to name a few.

ALL Closing costs must be disclosed in advance by federal law to buyers and sellers and agreed upon before a real estate deal can be completed.

Your lender will be able to inform you of your expenses once they know what type of financing you decide on and the amount of the loan you’re obtaining.

I always recommend talking with a few lenders.  They work for you too!  

Call me with your questions. 615.426.2902

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