Monies Needed in a Real Estate Transaction

Although every situation is different, there are a few common out of pocket costs associated with buying real estate.  While this is not an exhaustive list, we hope it will help you as you prepare to buy a home.

Most sellers require an earnest money check, typically between $500 and $1000 depending on the cost of the home, in order to show you are a serious buyer.  Additionally, in order to have peace of mind about the investment your are making, you’ll likey want to have a home inspection and termite letter done on the property.  Home inspections usually run anywhere between $350 and $400 while termite inspections are about $45-$75. 

Lenders have their own requirements as well.  An appraisal will need to be done on the home which is usually around $350.  Additionally, a credit report will be required for $75 in order to qualify you for the loan. 

Beyond these expenses, a good faith estimate will be performed by your lender which will detail all of the costs around the purchase of the home you desire.  Most of these costs are included in the closing costs and will be part of the final price tag on the home you buy.

Please don’t hesitate to give us a call if you have any questions regarding this transaction.  We work in this business everyday and keep up with the changes in our market to know what costs you can expect.

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.