Hidden Costs of Buying a House

    hidden costs of buying a home

    Interested in buying a home using the David DeVries Team of Realtors? Want to make sure you’re aware of all the costs? We’ve got you covered. Here is a short list of some common hidden costs of buying a house.

    Option Money: Option Money is a small amount of money that asks the Seller to hold your home until you get through the option period where you can back out if you would like. During this time most Buyers get a home inspection completed. Option Money should be provided to the Seller and is typically between $100-$250.

    Earnest Money: Earnest Money is an upfront deposit that later gets applied to your down payment or closing costs. It lets the Seller know you are seriously considering purchasing the home. This money will be sent to the Title Company. The usual amount of Earnest Money is between 1-2% of the purchase price.

    Inspection: A Home Inspection will take a few hours and can cost up to $500. This is a very important thing to do as the report will show you what sort of condition the home is in.

    Down Payment
    : A Down Payment is the amount of money a buyer pays at closing to fund a home purchase, usually expressed as a percentage of the total home price. The required down payment amount varies depending on the type of loan, ranging from as little as 3% for an FHA loan to more than 20% for some conventional loans. Mortgage insurance required for borrowers with down payment of less than 20%. Down payments are usually paid via cashier’s check or wire transfer and must be paid at closing.

    Closing Costs: Closing Costs included escrow fees, attorney fees, possible survey fees and document preparation fees.

    Appraisal: The mortgage company will require an Appraisal before lending on the home. Typically Appraisals are $400-$700.

    Interested in learning more? Contact us, the DeVries Team of Realtors. We’re ready to go the extra mile for you!

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    Our agents write often to give you the latest insights on owning a home or property in the local area.