One of the first things potential home buyers want to know is how much money they will have to come up with to make a purchase. The amount will depend on such things as the cost of the home and the kind of loan they use to finance the purchase. Three major upfront expenses are the upfront cost, the down payment and closing costs:

Upfront cost: This is what buyers need to pay out-of-pocket after an offer is accepted – these costs include:

Earnest money: An earnest money deposit shows the seller that a buyer is serious about purchasing a property. This money is typically held in a trust or escrow account with Title Company. Amount ranges $500 to 1% of purchase price.

Inspection costs: Before you buy a home, one of the things you should do is to have the home checked out by a professional home inspector. This is variable cost depend on size of house usually it ranges somewhere from $250 to $400.

Appraisal Fee: Getting a property appraisal is a standard part of the mortgage process. Banks and mortgage companies will give a homeowner a loan based on the appraisal value of the property they want to buy. Appraisal usually orders within first 2 weeks of contract and lender required to borrow to pay upfront and this will range $350 to $450.

Down payment: This is a biggest cost toward home buying process. Again this is also a variable cost depending on what type of loan you getting, lender will recommend you type of loan after reviewing your complete credit, job history and home sales price. Here are few example of loan types and down payment:

USDA: 0%. This type of loan only available in certain eligible areas and does have some restriction, please contact our agents for more details.

FHA: 3.5%. This loan is very common and suitable for first time home buyers again your lender will be the right person to determine since this loan also have some restriction.

Conventional: 5% to 20%. This is very good product as less restriction compare to first two product but it might require high credit score. This type of loan will give you more freedom to lower your payment by adding more down payment.

Other closing and pre-paid cost:

There are other variable closing cost which not due till closing day. Some of those closing costs include: Lender fee, title fee, title insurance, prepaid insurance, prepaid property taxes, prepaid mortgage insurance, government recording and transfer charges.

Please note some of the fee can be rolled into your loan or can be waived if your down payment is 20% or more. All Lenders and Title company charges are different.

Please contact our agent they will help you to determine approx. closing cost.