Typical Up-Front Costs

Up-front costs to buying a home are expenses that are not due at closing; instead they are to be paid to the vendor at time of service. Here are estimates of some of the up-front costs you can expect to encounter in a typical home-loan purchase.

Earnest Money – Negotiable, typically around $500 – $1,000 or 1% of purchase price. The earnest money is deducted from your account, held in escrow, and then goes toward down payment at closing.

Appraisal – $400 to $450 depending on the company. Appraisals are necessary if getting a home loan, but not required if paying cash. Additionally, this fee can sometimes be incorporated into a home loan.

Home Inspection - $325 to $450 depending on the company and home size. Not required but highly recommended.

Pest Inspection – $50 Not required but highly recommended.

Depending on the home, other up-front costs could include land surveys, flood surveys, sewer/ septic inspections, foundation inspections, and, if buying a foreclosure, utility turn-on fees.

Contact us today for any questions regarding up-front costs on buying a home. We are experienced agents and would be happy to talk to you free of charge about the up-front costs you can expect!