| Some home buyers (especially first-time home buyers) | | | | costs, or buyer expenses. Some typical buyer costs |
| think that a down payment is the only cost of buying a | | | | include the inspection(s), appraisal, surveys, title |
| home. However, they soon realize that their down | | | | insurance, escrow items, attorney fees, and mortgage |
| payment is one of many costs that require cash or a | | | | fees (credit report fees, loan origination fees, points, |
| check upfront. So, how much should you expect to | | | | interim interest, and transfer fees, to name a few). |
| pay before closing on your new home? | | | | Also, most home insurance companies require at least |
| Depending on the type of mortgage you choose, you | | | | one month's payment before the closing (and some |
| will probably make a down payment anywhere | | | | companies want the entire year's payment upfront). |
| between zero and twenty percent of the purchase | | | | Some of the typical seller costs, or seller expenses, |
| price of your home. This range is very large, but the | | | | include the CL-100 (also called the termite inspection |
| good news is that you get to choose what size down | | | | bond), deed stamps, the home warranty, commission |
| payment you'll make in the very early stages of house | | | | for both the listing real estate agent and the agent |
| hunting. You can talk with your home loan officer to | | | | representing the buyer, possible home repairs, and |
| find out what mortgage type is best for you (and this | | | | accrued interest. |
| decision will largely be based on how much money | | | | Since no two real estate transactions are the same, |
| you can put towards a down payment). | | | | you should get your buyer's expenses confirmed |
| Your down payment is usually the largest expense in | | | | before signing a contract. It's true that there are typical |
| buying a home, but remember that it is not the only | | | | buyer costs and seller costs, but it's a good idea to get |
| cost. There are several other expenses that can add | | | | these in writing so that you know how much you'll |
| up to be quite a bit of money. Usually these costs total | | | | need to spend during the home buying process. Also, |
| anywhere from three to eight percent of the purchase | | | | be sure to talk with your real estate agent and your |
| price of your home. | | | | mortgage lender so that you can get an estimate of |
| When buying a home, you should expect to pay for | | | | how much you should expect to pay when buying |
| certain items and services throughout the home buying | | | | your new home. |
| process. These expected costs are called buyer | | | | |