It’s super important to know how much money you are going to spend during this process. We don’t want any surprises! Here is an outline of the three costs you will encounter prior to settlement:
Good Faith Deposit – this is typically ½ to 1% of the purchase price, but can vary by situation, ask your Realtor for a realistic amount.
Inspection Costs - the costs associated with an inspection can vary a great deal according to how large the home is and how many you inspections you are performing. Expect the following costs:
Termite $65 - 75
General Home Inspection $300 - $600
Well Yield $350 - $400
Water Quality (Well) $100 - $150 (add lead in for $85)
Septic $240 - $300
Appraisal - This is ordered by the bank, but they give you the privilege of paying for it and it usually runs $500 +
In Summary… If you are buying a $150,000 home you should expect the following up front costs:
Inspections $ 500
Appraisal $ 500
Total Cost up front $2,000
When you get to settlement you will pay the following two expenses:
Down Payment – typically 3.5 to 5 % of the purchase price, depending on which type of loan you are using. You are always free to put down more as well (up to 100%!)
Closing Costs – Some of these expenses are fixed and some can vary according to the amount and type of loan you are using. If you are purchasing a $150,000 home, you could expect the Closing costs to be about $7500. A $300,000 home purchase wouldn’t be $15,000 – instead it might be around $12,000. VERY IMPORTANT!!! In certain markets – sellers may be willing to pay closing costs for their buyer, they may even expect to. Two things to remember with this…
- Be sure to speak with your agent about what market we are in so you can plan accordingly.
- These closing costs are from the seller’s pocket, and they have closing costs as well, so don’t expect closing costs and a huge discount as well.