02/23/2023
There are always upfront costs when buying a home. Here are some things to keep in mind:
1️⃣ Earnest money — 1% of purchase price or more (paid first but goes toward your down payment)
Due Diligence — around 3-5% of the mortgage (this will be credited back to you at closing)
2️⃣ Down payment — Varies depending on loan type (anywhere from 3% and up)
3️⃣ Closing costs — 2-5% of home loan amount (list of everyone included below)
4️⃣ Prepaid property taxes and home insurance — 6-12 months’ worth
Closing Costs include:
- Mortgage application, origination, and underwriting fees
- Commission fees for your agent or broker
- Home inspection
- Home appraisal
- Title search, insurance, and survey
- Property recording and transfer taxes
- Attorney fees