Closing Costs and Other Costs in Home Buying

Earnest Money

$500—$2,000. This is a check you will write when you submit an offer. It ensures to the seller that you are serious about purchasing the home. It’s held in an escrow account (usually through the brokerage or title company) and applied towards the purchase at closing.

Appraisal Money

$450—$650. If you are taking out a mortgage for your home purchase your lender will order the appraisal to make sure you don’t pay too much for your purchase. This money is paid to your lender within the first week of a fully executed contract.

Inspection Money

$250—$1,000. It’s always smart to have a home inspection. You can choose the inspector or Donna can give you recommendations for an inspector her clients have used in the past. EMP (electrical, mechanical, and plumbing), termite and wood rot, roof, drainage, pool, and structural inspections are just a few of the most common home inspections. Inspections usually occur within the first 10 days of the fully executed contract.

Closing Costs

$5,000—$7,500 (from 2% to 5% of the purchase price). If necessary, we may be able to negotiate to have the seller cover some or all of the closing costs or you can pay closing costs associated with the loan. This includes down payment, loan origination fees, credit reports, attorney fees, survey fees, title search fees, deed recording fees, escrow deposit, proration, transfer fees, title insurance policy and more.